[News Terms] 'Greenwashing' Subject to Fines by the Ministry of Environment

[Asia Economy Reporter Kim Jong-hwa] 'Greenwashing' refers to the practice where companies engage in activities that actually harm the environment while promoting themselves as if they are pursuing eco-friendly goals.

The term is a combination of 'whitewashing,' meaning 'concealing unpleasant facts,' and 'green,' symbolizing nature. It was first used in 1991 by the progressive magazine 'Mother Jones,' named after the American labor activist Mother Jones. At the time, it was used to criticize cases where brands promoted themselves through exaggerated advertising or unproven claims.

It involves downplaying environmental pollution issues occurring before product manufacturing and highlighting only certain processes such as recycling to package and promote products as eco-friendly. In reality, it refers to 'disguised environmentalism' that is not truly eco-friendly but is promoted as such. As ESG (Environmental, Social, and Governance), which emphasizes corporate social value, has become a key management focus, the term criticizes some companies' attempts to launder their eco-friendly image.

Starbucks' 'Reusable Cup,' released to commemorate its 50th anniversary, was once criticized for greenwashing.
[Photo by Yonhap News]

On the 31st, the Ministry of Environment announced a 'Resource Circulation and Climate Sector Work Plan' that imposes fines for greenwashing. The Ministry stated it will revise the Environmental Technology Industry Act in the first half of the year to impose fines of up to 3 million KRW for violations of environmental labeling and advertising regulations.

Irish airline Ryanair was caught by authorities after advertising itself as the airline with the lowest carbon dioxide emissions. Domestic coal power plants used phrases such as 'world-class eco-friendly facilities' and 'eco-friendly low-cost power plants' in advertisements, which led to complaints filed with the Anti-Corruption and Civil Rights Commission by Greenpeace and others. Additionally, paper companies have emphasized eco-friendly management by focusing only on specific areas such as the use of recycled paper, while not disclosing environmental destruction caused by logging?these are typical examples of greenwashing.