Tag: PEF

In a newly published article from Consumption Research Norway SIFO at Oslo Metropolitan University, Who Can Stop the Greenwashing, penned by Ingrid Haugsrud and Ingun Grimstad Klepp, the authors literally lambaste how the Sustainable Apparel Coalition (now Cascale) misused outdated and faulty data for their launch of a Higg (now Worldly) consumer-facing sustainability label.

In a detailed and thorough review of the case brought forward by Naturvernforbundet (Friends of the Earth) in Norway against sportswear actor Norrøna, who used the Higg MSI tool-based labeling scheme to market an organic cotton t-shirt as ‘less thirsty’ than a conventional cotton t-shirt, the authors question who has both the will and the impetus to stop greenwashing.

In the chapter, which is published in Mediating Sustainability in Consumer Society (Routledge 2024), they highlight the specific case in which The Norwegian Consumer Agency (NCA) issued a ruling in 2022: “the Higg MSI data did not constitute sufficient documentation for the claims made by the Norwegian trader in their marketing. The NCA concluded that the trader’s use of Higg MSI data in marketing was misleading, and therefore prohibited under the Norwegian Marketing Control Act”.

The result of the ruling was massive international media coverage, name-changes for both Higg and SAC, and that the Higg MSI-based label was discontinued. Assistant Director Tonje H. Drevland was responsible for the case on behalf of the NCA and is therefore an important part of this case. In addition to ruling that “Higg MSI data in marketing [is] misleading, and therefore prohibited under the Norwegian Marketing Control Act, which is based on the EU Unfair Commercial Practices Directive (UCPD). This conclusion could be seen as a warning to other traders operating in the EU/EEA area, as the NCA found that the use of Higg MSI data in marketing towards consumers in general could easily be misleading.”

The NCA has for a long time provided general guidance on the use of environmental claims in marketing. As a result of the ruling, the SAC (Sustainable Apparel Coalition) asked for more specific guidance. This resulted in “GUIDANCE TO THE SUSTAINABLE APPAREL COALITION ENVIRONMENTAL CLAIMS IN MARKETING TOWARDS CONSUMERS BASED ON THE HIGG MSI” – written in collaboration with the Netherlands Authority for Consumers and Markets (the ACM).

The ruling was presented in letters, on webpages, in the aforementioned guidance, in lectures, and in the SAC’s annual conference for the textile industry. Here, Drevland’s message is particularly clear: “I want H&M, Inditex, all large players to take a step back and realize that the steps they are taking internally may feel [like a great cost] to them but remember to look at it from the other side, from the environmental perspective.” She also stressed that “wrong information is worse than no information“.

Which, of course, is counter to the argument used by SAC (Cascale), who have repeatedly claimed that lack of perfection should not come in the way of using the Higg data, nor hinder it from being fed into the Product Environmental Footprint Category Rules data-base.

The critique from the NCA on the use of the Higg MSI or rather the Higg Index Sustainability Profile is as follows:

• Global averages are not product-specific.
• The LCA data that backs the global averages and the Higg MSI is outdated.
• In addition, the LCAs underpinning the claims were not intended for the comparisons that were made.

More consequences followed: The NCA sent a warning to the Swedish fast fashion actor H&M, in case they considered using the Higg Index Sustainability Profile in marketing in Norway, as well as a letter to the SAC (Cascale) telling them to inform all their members about the ruling, and what consequences similar claims on the market in Norway could trigger. In addition, they informed other consumer authorities in the EU/EEA about the decision and issued a general warning to “other traders operating in the EU/EEA area”. Furthermore, NCA started a coordinated action from the Consumer Protection Cooperation Network (CPC), coordinated by the European Commission and led by four consumer protection authorities from Germany, Denmark, Norway, and Sweden against Zalando. According to a press release from the EU from February 2024, Zalando removed all their misleading environmental claims from their website. Thus, a large international player was forced to follow “the ruling”.

The SAC issued a response to the NCA ruling, stating that they will launch a third-party expert review of the Higg MSI and collaborate with the NCA on how to present information to consumers, and in 2023 KPMG did publish a report, but this did not answer the main question whether the data was suited for consumer-facing information or not. They wrote that this would depend on how PEF developed. The NCA’s strong criticism of the Higg Index Sustainability Profile was particularly serious as the SAC and their work with the Higg have been central to the development in the early stages of the EU’s planned anti-greenwashing weapon, PEF. Seeing the ruling and PEF (and the data underpinning PEF) in coherence is a discussion theme – which the EU Commission has tried to avoid – repeatedly dodging the “bullet” and insisting that they are not at all related.

The SAC (Cascale) is also a member of the Policy Hub. Prior Chair of the Policy Hub Baptiste Carriere-Pradal has been the Chair of the Technical Secretariat of the Apparel EU Product Environmental Footprint. The secretariat voting members are dominated by the industry, and the SAC members have a majority of the vote, which they pay a substantial sum to have. As already mentioned, the data and the studies that underpin the Higg MSI are to a large extent the same data and studies that are being used in the development of the PEFCR.

The European Commission’s Joint Research Centre has been tasked with verifying the scientific robustness of the database. Obtaining new Life Cycle Assessments (LCA) suitable for comparison is both challenging and expensive, and even more difficult if global averages cannot be used, which is the mainstay of the LCA-based Higg MSI. Another problem is that parts of the tool are behind a paywall and therefore unavailable to consumers and for documentation, further hindering a democratic process. When the complaint was filed by Friends of the Earth Norway, they chose to pursue the case because the complaint referred to scientific papers that questioned the Higg MSI data.

This gave research and critical journalism an important role in unpacking the issue. Most notable was the work of Veronica Bates Kassatly, an independent analyst and consultant who has authored several white papers with Dorothée Baumann-Pauly: The Great Green Washing Machine: Part 1 and more importantly Part 2) The Use and Misuse of Sustainability Metrics in Fashion. Worth mentioning is also her significant contributions related to cotton and other fibres, and how the incorrect claims and misuse of LCA data abound. The articles can be found here.

Both academic research and critical journalism have pointed out serious weaknesses in the Higg MSI in general, and the claims surrounding cotton in particular. It is also evident that research and critical journalism played a role in documenting the controversies and providing the necessary information to the consumer authorities.

The NCA’s ruling stated that the Higg Index Sustainability Profile was greenwashing if the use of the scheme was consumer-facing. In contrast, their authority had no means to say anything about the tool as such. It can still be used business to business (B2B). The same information used B2B could be particularly harmful because it is to a greater extent used as a basis for decisions – which in turn affects the consumers’ options and the downstream producers. It is also possible that the power of consumer authorities, and especially the NCA, shown in the ruling, is easily pulverized if the communicator of the unreliable information is no longer the company itself, or industry organizations such as the SAC (Cascale), but authorities such as the EU, through tools like the PEF.

The article stresses that this perspective is important, and also resulted in a lot of attention in the international press in the aftermath of the ruling. Articles with headlines like “EU PEF tool’s regulations in question now after Higg’s MSI” stating that “A group of 12 organisations have expressed their concerns over the EU Commission’s plans to use Product Environment Footprint category rules (PEF-CR) ‘as a standalone method’ for communicating green claims in apparel and footwear” or “After Higg Came Under Fire for Greenwashing, Now This One’s in the Hot Seat, Too”. PEF might, in other words, just as well be a powerful greenwashing tool – if the knowledge it is based on is insufficiently documented, outdated, contested, or irrelevant, to mention some of the criticisms against the Higg MSI.

The SAC (Cascale) themselves, have called for speeding up the PEF process, and one can wonder why.

It will become more difficult to stop greenwashing based on a lack of documentation if this is hidden in the PEF system. Finding the numbers behind the score will demand a lot of detective work from consumers and others. It will perhaps become even more important to establish what is essential and relevant information for consumers.

“Mediating Sustainability in the Consumer Society”, edited by Astrid Skjerven, Lisbeth Løvbak Berg, Liv Merete Nielsen and Dagny Stuedahl, will be launched in Oslo January 29th 2025, 4 PM. More info here.

The article Who Can Stop the Greenwashing, can be accessed here.

Clothing Research’s Lisbeth Løvbak Berg, who is co-editor, also has written the last article in the book: Indigenous approaches to mediation of the climate and nature emergency: a conversation with Vanessa Andreotti. 

Access the book here.