Last week, the UK's Advertising Standards Authority released the results of research that it conducted on consumers' understanding of certain emerging environmental marketing claims.  This research should provide useful to marketers in the United States -- since the FTC's guidance on green marketing is now more than a decade old and doesn't address some of the key issues that marketers are focused on now.  While the FTC has said that it plans a review of the Green Guides in 2022, there's still no word on the specific timing. 

The report, Climate change and the environment -- consumer understanding of environmental claims, focuses on consumers' understanding of the terms "carbon neutral" and "net zero" and on the advertising of "electric" and "hybrid" vehicles.  Here are some of the key findings.  (For a more in-depth look at the report, check out Geraint Lloyd-Taylor's thoughtful blog post about it.)

"Carbon Neutral" and "Net Zero" Claims

The report found that some consumers were misled by "carbon neutral" and "net zero" claims.  According to the report, some consumers understood these claims to mean that the company had actually reduced their carbon emissions, rather than just relying on carbon offsets.  According to the report, "People tended to feel misled when they learned that companies were often relying on offsetting, either partially or wholly, rather than directly reducing carbon emissions."  

The report also found consumers felt that there should be an official, standardized definition of "carbon neutral" and "net zero" and that marketers should be "as transparent as possible, highlighting the reliance on offsetting in claims."  

What's the important take-away here?  If you're making a "carbon neutral" or "net zero" claim that's based on the use of carbon offsets in the United States, it's a good idea to clearly and conspicuously qualify the claim to explain that this is what's happening.  

Electric and Hybrid Vehicle Advertising

The ASA's report also found that the increase in marketing of electric and hybrid vehicles has "made the car purchasing process more complex and more challenging for consumers."  The report found that current advertising for these types vehicles left consumers hoping for more information about the technical aspects of the cars.  The report said that the ads were "less successful at educating about new technologies," including about issues such as range, how cars are charged, the charging infrastructure, and fuel economy, among others.  

What the important take-away here?  Whenever advertising new technology in the United States, it's always important to try educate consumers about what the technology is and how it works, in order prevent consumers from being misled about what the technology really does.  Remember, it's generally the advertiser's responsibility to ensure that consumers aren't misled.  

When advertising hybrid and electric vehicles in the U.S., then, marketers should consider whether their ads are providing enough information (and not misleading consumers) about how cars are charged.  

Marketers should also ensure that they're not overstating the range and fuel economy that the cars provide.  For marketers in the United States, a good place to start is the FTC's Guide Concerning Fuel Economy Advertising for New Automobiles, which provides specific guidance on making fuel economy and range claims.