Per this article, the SEC has fined BNY Mellon $1.5 million over falsely claiming some of its investment funds had achieved and passed an ESG quality review, when in effect, they had not.
We all know consumers want you to be sustainable – in fact, studies show 7 out of 10 consumers will move their purchases/loyalty if they find a sustainable company doing what you do.
This is one of the reasons why certified sustainable companies are growing 75% – 20x faster than their non-certified competitive peers.
This creates significant financial motivation for companies to claim they are sustainable. But, even if you are not caught by a governing body for your exaggeration, the vast majority of consumers are not going to believe you until you are certified.
Why?
Advertising ‘puffery’ (ie, “My toothpaste will give you the whitest white”) has conditioned consumers to disbelieve claims that are not supported by 3rd party certification/validation – in fact, +70% of consumers disbelieve a company’s sustainability claims if not supported by a valid 3rd party certification; conversely, +70% of consumers believe a company’s sustainability claims once they are certified via a globally-recognized program.
Do it right the first time – become certified sustainable via a globally-recognized and respected program.
This PPP shows what you should look for in a program.