Daily Current Affairs : 18-November-2023

In a bid to tackle the rising concern of greenwashing in the advertising industry, the Advertising Standards Council of India (ASCI) has introduced a comprehensive set of guidelines. Greenwashing refers to misleading environmental claims made by companies to appear more eco-friendly than they actually are.

Understanding Greenwashing:

Greenwashing involves the use of terms like “environment-friendly,” “eco-friendly,” “sustainable,” and “planet-friendly” without substantial evidence. ASCI’s guidelines emphasize the need for strong evidence supporting such claims and the consideration of the full life cycle of a product or service.

Key Guidelines:

To address greenwashing effectively, ASCI’s guidelines include:

  • Environmental claims require strong supporting evidence.
  • Consideration of the full life cycle of the product or service.
  • Certifications and Seals of Approval should specify evaluated attributes.
  • Assertions about a product being compostable, biodegradable, recyclable, non-toxic, or free of certain elements must be grounded in reliable scientific evidence.
Aim of the Guidelines:

The primary goal of these guidelines is to foster transparency and authenticity in advertising. By setting a standard for environmental claims, ASCI aims to empower consumers to make informed decisions. The guidelines are currently open for public consultation until December 31.

Initiatives to Combat Greenwashing:

In addition to ASCI’s guidelines, various national and international initiatives are being undertaken to curb greenwashing:

  • International Sustainability Standards Board (ISSB): To establish uniform sustainability and climate standards globally, starting in 2024.
  • SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms: Enhancing corporate disclosure on environmental and social aspects.
  • SEBI’s Green Bonds Guidelines: Issued dos and don’ts to ensure the credibility of green bonds.
  • RBI’s Participation in GFIN’s Greenwashing TechSprint: Joining the Global Financial Innovation Network’s initiative to combat greenwashing through technological innovation.
Important Points:
  • Understanding Greenwashing:
    • Use of terms like “environment-friendly” without sufficient evidence.
    • ASCI guidelines emphasize strong evidence and consideration of product life cycle.
  • Key Guidelines:
    • Environmental claims require strong evidence.
    • Full life cycle consideration is essential.
    • Certifications and Seals of Approval must specify evaluated attributes.
    • Assertions about compostability, biodegradability, etc., need reliable scientific evidence.
  • Aim of the Guidelines:
    • Foster transparency and authenticity in advertising.
    • Empower consumers to make informed decisions.
    • Guidelines open for public consultation until December 31.
  • Initiatives to Combat Greenwashing:
    • International Sustainability Standards Board (ISSB):
      • Establish uniform sustainability and climate standards globally from 2024.
    • SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms:
      • Enhance corporate disclosure on environmental and social aspects.
    • SEBI’s Green Bonds Guidelines:
      • Dos and don’ts issued for credibility of green bonds.
    • RBI’s Participation in GFIN’s Greenwashing TechSprint:
      • Joining Global Financial Innovation Network’s initiative to combat greenwashing through technological innovation.
Why In News

The Advertising Standards Council of India (ASCI), the advertising industry’s self-regulatory body, has introduced a comprehensive 9-point draft of guidelines aimed at combating “greenwashing” by companies, reflecting a commitment to ensuring transparency and accountability in environmental claims within the advertising sector.

MCQs about Greenwashing

  1. What is the primary objective of ASCI’s guidelines on greenwashing?
    A. To promote misleading environmental claims
    B. To empower consumers for uninformed decisions
    C. To foster transparency and authenticity in advertising
    D. To endorse eco-friendly products without evidence
    Correct Answer: C. To foster transparency and authenticity in advertising
    Explanation: ASCI’s guidelines aim to foster transparency and authenticity in advertising, empowering consumers to make informed decisions.
  2. According to ASCI’s guidelines, what should environmental claims be supported by?
    A. Weak evidence
    B. Certifications only
    C. Strong evidence
    D. Consumer testimonials
    Correct Answer: C. Strong evidence
    Explanation: ASCI emphasizes that environmental claims must have strong supporting evidence.
  3. Which organization will set uniform sustainability and climate standards globally starting in 2024?
    A. ASCI
    B. RBI
    C. ISSB
    D. SEBI
    Correct Answer: C. ISSB
    Explanation: The International Sustainability Standards Board (ISSB) will set uniform sustainability and climate standards globally from 2024.
  4. What is the significance of SEBI’s Green Bonds Guidelines?
    A. Encouraging greenwashing in financial markets
    B. Issuing guidelines for the credibility of green bonds
    C. Discouraging companies from adopting green practices
    D. Ignoring environmental concerns in financial reporting
    Correct Answer: B. Issuing guidelines for the credibility of green bonds
    Explanation: SEBI’s Green Bonds Guidelines include dos and don’ts to ensure the credibility of green bonds, discouraging greenwashing in financial markets.

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