Green trademarks are a powerful tool for businesses that seek to communicate their sustainability commitments to consumers. However, some businesses have also utilized these marks to influence consumer purchasing decisions without fully committing to the cause.
As with all trademark applications, sustainability marks are subject to rigorous legal and regulatory scrutiny, and brand owners must navigate a complex landscape to ensure their eco-friendly claims are both genuine and legally sound.
In our recent webinar, we delved into the critical role trademarks play in sustainable branding. You can watch the complimentary webinar here.
The importance of sustainability for consumers
Sustainable brands are increasingly vital in today’s market, a response to the growing consumer demand for environmentally responsible products. As awareness of environmental issues rises, consumers are more inclined to support companies that reflect their values and ethics. In fact, over 85% of U.S. consumers now believe it is important for businesses to act responsibly towards society and the environment, with 34% stating that their trust in brands would increase if recognized as ethical or sustainable by an independent third party.
This positive shift in consumer behavior has increased the pressure on companies to adopt greener practices to stay competitive. However, while many brands claim to prioritize ethical practices, such as reducing carbon footprints and using eco-friendly materials, some fall short of these promises. This inadvertently leads to a culture of greenwashing in some sectors.
Key webinar takeaways
During a recent Clarivate™ webinar, Eva-Maria Strobel and Cynthia Cole, Partners at Baker McKenzie, shared their expertise on the green trademark landscape. As chairs for multiple practice groups within the firm, including the global IP, Technology and Data Practice Group and the Global Commercial, Tech and Transactions Subgroup, they provide deep expertise across technologies and borders.
To start the webinar, Cole explained the concept of greenwashing: “greenwashing is a term that has arisen in the last few years and reached a fever pitch for many organizations. The term is used when an organization makes false, unsubstantiated or outright misleading statements or claims about the sustainability of a product or a service or even more broadly about business operations generally.”
Throughout the webinar, key points were discussed, including:
1. Building consumer trust
Transparency and authenticity are paramount. To earn consumer trust, brands must ensure their actions and verifiable data back their sustainability claims.
Cole explained, “It is quite difficult to get green trademarks registered in Europe and in the United States, and the main reason for this is because of the grey area about what is classed as ‘deceptive’ for a consumer.”
Elaborating on the rules surrounding deceptive trademarks, Strobel said, “The consumer must recognize the green trademark as conveying such a specific, clear and also unambiguous message about the nature, the quality, the geographic origin or any other characteristic of the goods or the services.”
2. Trademark registration and portfolio expansion
Securing successful trademark registrations requires careful planning and consideration of various legal factors. When done right, expanding trademark portfolios to include green trademarks can enhance a brand’s market position.
3. Alternative options for green brands
Certification marks serve as alternative options to demonstrate environmental credentials. They provide an additional layer of credibility and assurance to consumers.
Strobel said during the webinar, “The Empowering Consumers Directive and the Green Claim Directive really influence not just the advertising claim, but also the use and arguably the registration of trademarks.”
4. Navigating legal challenges
The legal landscape for green trademarks is continually evolving. Understanding the fine line between genuine environmental stewardship and greenwashing is crucial. Brands must stay informed about stricter trademark laws and regulations to avoid potential pitfalls.
“It is really important to be aware of the developments that are coming surrounding sustainability and greenwashing, even if they seem far away on the horizon right now. Be very prudent when you use generic green claims and take local advice depending on your jurisdiction,” explained Cole.
What does the future of green trademarks look like?
As the pressure to achieve net zero emissions intensifies, the importance of green trademarks will only grow. Brands that successfully navigate the legal complexities and genuinely commit to sustainability will not only thrive but also promote a greener future.
Giving advice for organizations, Cole said, “Inside an organization, it is important to make sure there are clear guidelines as to what the brand is communicating to the market. And make sure those guidelines are well established with the right types of internal checks.”
If you would like to learn more about green trademarks and sustainability, you can watch the full webinar now for free.
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