Greenwashing, the act of making misleading environmental claims, threatens Mauritius’ sustainability efforts. Consumers struggle to identify deceptive practices like “green labelling” or manipulated data. The current legal framework lacks teeth, with limited guidance beyond sustainable bonds.
In this interview with Ms. Harsheenee Aujayeb, General Manager of ESG Intellis Solutions, we explore solutions. She notes that collaboration between the government and private sector is key. A common ESG reporting framework and clear greenwashing definitions, along with a dedicated regulatory body, can create a more transparent business environment. International partnerships, like those with the UN Climate Change, can provide valuable resources. By tackling greenwashing head-on, Mauritius can position itself as a leader in responsible business practices within Africa. Excerpts:
- What is greenwashing and how can it be classified?
While Mauritius lacks a general legal definition of greenwashing, the Bank of Mauritius’ Sustainable Bonds Guide offers a clear explanation: “the practice of making unsubstantiated or misleading claims about the environmental benefits of a product, service, technology or company practice.” Experts further categorise greenwashing tactics. The University College of Estate Management provides a simplified breakdown for easy understanding:
- Green Labelling: Companies use terms like “green” or “eco-friendly” without evidence or established standards to support their claims.
- Misleading or False Data: Fabricated or biased data inflates a company’s image or environmental benefits.
- Greenlighting: Companies highlight a single green aspect while downplaying other environmental impacts.
- Greenhushing: Companies underplay or hide negative environmental practices.
- Greenrinsing: Companies manipulate targets to avoid accountability for failing to achieve sustainability goals.
- Greenshifting: Companies deflect blame to consumers for environmental damage.
- Greencrowding: Companies collude to mask environmentally harmful practices.
- Deceptive Imagery: Companies use imagery associated with sustainability to create a misleading impression of being environmentally friendly.
Regardless of classification, greenwashing misleads stakeholders about a company’s environmental commitment. This undermines genuine sustainability efforts and hinders progress towards addressing the climate crisis.
- How can Mauritian consumers be empowered to identify misleading environmental claims (“greenwashing”) by businesses? Are there educational initiatives to promote both consumer awareness and responsible business practices?
Don’t be fooled by mere buzzwords like “green” or “eco-friendly.” Instead, delve deeper. Look for concrete evidence – check for internationally recognised labels like Cruelty Free or Fairtrade certifications, or research the ingredients listed. A quick online search can shed light on any ambiguous information. Businesses, on the other hand, should ensure external verification of their sustainability reports. Tracking a company’s environmental performance over time and considering the entire lifecycle of a product or service, not just a single highlighted benefit, provides a more complete picture. Ultimately, we shouldn’t hesitate to question and demand clarification.
The GFIN Greenwashing TechSprint in June 2023 serves as a positive starting point. This initiative brought together regulators, businesses, and innovators to develop tools that could help mitigate greenwashing risks in the financial sector.
A more holistic approach is necessary to truly tackle greenwashing across industries. Sector-specific initiatives or voluntary guidelines can pave the way while awaiting comprehensive regulatory frameworks. Educational initiatives and raising public awareness empower consumers and stakeholders to become more discerning.
Additionally, initiatives like Made in Moris, though not strictly focused on greenwashing, contribute by raising awareness of ESG practices and encouraging their adoption by local SMEs.
- How can more businesses be encouraged to adopt transparent reporting on their environmental impact?
To encourage businesses to transparently report on their environmental impact, a multi-pronged approach is crucial. Firstly, developing a local Environmental, Social, and Governance (ESG) reporting framework would simplify adoption for Mauritian companies and enable them to benchmark their performance against each other.
Secondly, raising awareness about this topic across the entire ecosystem – consumers, regulators, businesses, media, and academia – is essential to foster collective action and hold companies accountable.
Thirdly, replicating the success of the GFIN Greenwashing TechSprint in other sectors allows industries to define their own relevant guidelines and best practices specific to their challenges.
Finally, investing in research on greenwashing practices of Mauritian companies would provide valuable insights for developing effective mitigation strategies.
- Does Mauritius currently have strong enough laws to prevent greenwashing by businesses? If not, what are the challenges and benefits of creating a legal framework specifically for greenwashing?
Mauritius currently lacks a comprehensive legal framework to address greenwashing. While the Bank of Mauritius (BoM) offers some guidance for sustainable bonds, it doesn’t encompass the broader issue. The BoM’s guidelines allow bondholders to sue for compensation or nullify transactions in case of greenwashing, but enforcement relies on reporting breaches through existing financial regulators like FSC or SEM. This fragmented approach is insufficient. A clear definition of greenwashing from a Mauritian perspective, coupled with a dedicated regulatory body, is necessary to tackle greenwashing beyond the realm of sustainable bonds.
The challenges we face are multifaceted: limited public knowledge, a lack of context from existing research, weak regulatory frameworks, and potentially even a lack of general interest in the topic. However, overcoming these challenges will yield significant benefits.
A robust framework can enhance our national reputation for commitment to ESG principles and climate change action. This, in turn, can attract green investors seeking truly sustainable projects and foster a local ecosystem of green and sustainable companies, ultimately driving a circular economy.
- Looking ahead, how can Mauritius position itself as a leader in Africa when it comes to tackling greenwashing and promoting genuine environmental responsibility in business practices?
To effectively combat greenwashing in Mauritius, a multi-pronged approach is necessary. Collaborative efforts between public and private sectors are crucial.
Firstly, developing a common Environmental, Social, and Governance (ESG) framework, potentially mandatory for certain industries, would provide a standardised approach.
Secondly, stringent legislation defining greenwashing types, penalties, and enforcing agencies is essential.
Thirdly, considering Mauritius’ reliance on imports, establishing standards or frameworks for supply chain due diligence is vital to address greenwashing claims originating upstream.
Finally, adopting a zero-tolerance approach towards greenwashing, through public pronouncements and enforcement mechanisms, sends a strong message of deterrence to companies engaging in such practices. This multifaceted strategy tackles greenwashing from multiple angles, fostering greater transparency and accountability across the Mauritian business landscape.
