by Rachel Lincoln Sarnoff, Marketing & Communications Director
A new survey commissioned by Covanta, a PSI partner, found that nearly half of Americans want to hold corporations more accountable for climate action — including 63% who believe companies should have strong sustainability platforms. With the global green technology and sustainability market expected to be worth $417 billion by 2030, companies are lining up their “green marketing” claims. As a result, “greenwashing” – marketing false or misleading claims about sustainability – is also on the rise.
The Federal Trade Commission’s Green Guides were established in 1992 to help marketers avoid making misleading environmental claims – these include guidance on how to message about what can be recycled. However, the types of packaging that brands now use have evolved significantly since the Guides were last updated, in 2012. So, when the FTC invited public comments regarding its review of the Green Guides, PSI – and the Pack Green Coalition, a PSI partner – submitted analysis.
Our shared key priority is packaging EPR legislation, which holds manufacturers – known as “producers” – responsible for waste management and recycling, and incentivizes the incorporation of environmental considerations into product design, while educating the public about what can actually be recycled. In British Columbia, where packaging EPR has been in place since 2014, 90% of packaging is recycled.
In 2016, PSI developed model packaging EPR legislation, then updated it in 2019 with input from industry and government. PSI’s model eventually informed state EPR for PPP legislation, either indirectly, as in Maine and California, or somewhat more directly as in Oregon and Colorado.
Formed in 2022, the Pack Green Coalition educates and advocates for meaningful policies and laws to advance the replacement of unnecessary plastic in packaging supply chains with sustainable alternatives, playing a critical role in advancing the global transition to a circular economy.
A critical component of EPR for PPP laws and programs is consumer education about what can and cannot be recycled. Because of this, accurate federal guidelines are critical. PSI and PGC urged the FTC to update the Green Guides with more concrete guidance to marketers to accurately represent the circularity of the materials they use and avoid disrupting the recycling system.
Specifically, we requested updated guidance on “recyclable” claims. Currently, the Guides do not prevent misleading recyclability claims, so revising the criteria is imperative. For example, under the current requirements in the Guides, marketers can use unqualified recyclable claims if the material is accepted by a “substantial majority” (60%) of recycling facilities where the product is sold. Polypropylene packaging had a recycling rate of only 2.7% in the U.S. in 2018, but more than 60% of consumers had access to recycling facilities that accepted polypropylene tubs, bottles, jugs, and jars. There is a stark disconnect between materials that qualify to be labeled as “recyclable” and materials that are recycled. Mere “availability” of recycling facilities for a particular material is an inadequate indicator for whether that material can be credibly claimed to be recyclable.
“Recyclable” presently does not mean a product is actually getting recycled. In addition, the recycling rate for a given material should be based not on the amount collected but, rather, on the material’s (1) actual reclamation at appropriate facilities that meet the requirements of the Basel Convention and (2) re-entry into the commerce stream. In addition, plastic items should meet the Association of Plastic Recyclers’ APR Design® Guide for recyclability.
We urged the FTC to revise the Guides to require that a product may only be labelled as “recyclable” (whether through text or symbol) if it meets the recyclability thresholds mentioned above and if the material type and form routinely becomes feedstock used in the production of new products or packaging, as California mandated through SB 343. These requirements will increase circularity of the U.S. economy and instill greater confidence and trust in the U.S. recycling system.