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Incorporation into strategy and involvement at all levels: crucial for avoiding greenwashing

Experts from Telefónica, NOIMA and Atrevia agree that greenwashing not only affects a company’s P&L account in the medium and long term but also the recruitment and retention of talent and the confidence of investors
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“It’s very important to be coherent: doing what we say we’ll do and leading by example” in order to avoid and move beyond greenwashing, said Ana Sáinz, general director of the SERES Foundation at the opening of the latest session in the Esade - SERES Foundation Lecture Series which addressed, with experts from Atrevia, NOIMA and Telefónica, how to identify and eradicate the practices of greenwashing and purpose-washing. Sáinz also emphasized that “the social commitment of companies extends beyond this; it’s not a visibility or reputation operation, but a strategic concept for the company. The more strategic it is for a company, the more the risk of greenwashing can be avoided”.

Ignasi Carreras, professor and director of NGO Management Training Programs at the Esade Institute for Social Innovation, explained that greenwashing “is a deceptive practice designed to create an illusory image that affects companies’ responsible and sustainable behavior and their purpose too.” In this respect, Carreras also said that excessive communication and a lack of integrity and transparency were the reasons for these actions. Nonetheless, he stressed that more companies have made responsibility their main focal point as a result of citizens’ influence. “They are now more demanding and practical and are able to differentiate between good and bad behavior," he concluded.

Prioritize “being” over “appearances”

Elena Valderrábano, Telefónica's global director of Sustainability, pointed out that “in order to avoid greenwashing, we must all work towards standardization, verification and training. This is the path that Telefónica is following in order to be transparent and rigorous: use international standards; certify or verify data and information; and train all teams to gain the necessary knowledge. In addition, we try to convey this commitment to our suppliers and the companies we work with. Together, we must opt for the quality of the initiatives and what we have, not the quantity.”

On the other hand, leadership involvement is a necessary instrument for driving companies towards new models. This matter was championed by Manuel Sevillano, the global director of Reputation and Sustainability at Atrevia. He also highlighted the importance of “the Board knowing what is being conveyed to society and stakeholders.” Sevillano also emphasized the participation of the sustainability department in the development of new products and services, the identification and assessment of risks and what and how is communicated: “The areas that do things are not always in touch with the areas that count them. Communication is too important for sustainability management not to be involved in it.”
 
Finally, Sonia Ruiz, CEO and founder of NOIMA, highlighted the influence of the context, in a landscape of constant crisis, “in which trust is vital and the regulatory environment demands more transparency.” On the same line, she mentioned the demands and scrutiny of consumers. “Society expects purpose and slogans, but also commitment, action and realities, so companies are part of the solution and rather than the problem.” Ruiz also underlined business awareness as regards accountability, their shared responsibility and obligation, and working together to find collaborative solutions. In this respect, training is essential and “must take place at all levels, because we are all ambassadors for our company,” she concluded.