Anti-Greenwashing Code of Ethics

I. Definition of Greenwashing: The FSBA defines the term "Greenwashing" as follows: Disinformation disseminated by an organization so as to mislead the public by stressing environmental attributes that are either unfounded (i.e., unsubstantiated) or irrelevant (i.e., lacking in proper qualifications). Appropriate (i.e., transparent) environmental marketing claims (express or implied) contain a reasonable substantiating basis comprised of competent and reliable evidence, present the necessary qualifications/disclosures and do not overstate a product or service's environmental attributes. Such claims are least likely to either deceive the consuming public or run afoul of applicable State and Federal rules and regulations.

II. FSBA Policy on Greenwashing: Greenwashing has no place in the FSBA or the green market at large. In making such a statement, the FSBA recognizes the import of the consumer's role in the green/sustainable market economy. Advertising and marketing is the single largest means by which the public is swayed to utilize its capital. Unsubstantiated and irrelevant claims regarding a product's qualities (green or otherwise) serve only to confuse the public, causing them to pass up legitimate products for ones that are not as they seem. Not only could such practices constitute fraud, but they also serve to discredit the legitimate claims made by so many participants in the green sector. Cognizant of the negative impact posed by Greenwashing, the FSBA has decided to take a proactive stance in identifying and eliminating Greenwashing by both its members and non-members alike. To this end, the FSBA has formed a Transparency Committee.

III. Purpose of Transparency Committee: The FSBA's Transparency Committee ("Committee") will serve the following roles:

1. Assist members in insuring that their environmental marketing claims are not deceptive in nature. While making no guarantees as to the veracity or content of member marketing claims, the Committee will provide its services to members seeking the review and revision to their environmental marketing claims for an hourly fee. Assistance provided by the Committee will include efforts to insure that member marketing claims are sufficiently substantiated, contain the necessary qualifications, and to accurately state the product/service's environmental attributes.
2. Receive, vet, investigate and, where necessary, mediate inter- FSBA member disputes involving Greenwashing claims.
3. Assume a proactive stance in protecting member interests by facilitating the formulation and assertion of Greenwashing/deceptive trade practice claims against non- FSBA members.

IV. Committee In General: The Committee will initially be comprised of five (5) FSBA Board-appointed individuals, each of whom will be asked to mediate member and non-member disputes in an impartial and confidential manner. In the event of a perceived conflict of interest between a Committee member and any other party involved in a dispute involving the Committee, a non-biased substitute will be appointed, with the approval of all involved parties. As "one should not cast stones in a glass house," the Committee will focus its initial energies insuring that FSBA member marketing claims are defensible, substantiated and legitimate before pursing claims against non-member organizations.

V. Member Assistance

1. The Committee will be made available, in an advisory mode, to all FSBA members with questions concerning particular environmental marketing techniques. Members can identify such concerns (with specificity), and provide supporting information (i.e., that marketing information which is provided to the consuming public), to the Committee at greenwash@foresightdesign.org. The Committee will then render its opinions concerning the environmental marketing techniques for a fee.
   1. The Committee will not receive or review lengthy scientific reports, marketing studies or the like. Rather, the Committee review is to serve as an initial "litmus test" aimed at identifying potential problems with Member marketing efforts.
2. Following its review of the materials provided by Member, the Committee will issue an opinion concerning the appropriateness of the marketing efforts at issue. The opinion will consist of one of three variations:
   1. Good - meaning that, based upon its review of the materials made available to it, the Committee does not see reason for concern with the specific environmental marketing technique identified by Member.
   2. Questionable - meaning that, based upon its review of the materials made available to it, the Committee perceives potential problems with the environmental marketing technique identified by Member. Such an opinion will also recommend that Member follow up with the Committee or other professionals regarding the potential issues.
   3. Bad - meaning that, based upon its review of the materials made available to it, the Committee considers the environmental marketing technique identified by Member to be in direct violation with this Policy and/or applicable law. The Committee will recommend that Member immediately cease such marketing activity and seek help from either the Committee or other professionals in correcting such problems.
3. Members who send issues to the Committee for review agree that the Committee's report contains opinions based only on a review of the information made available to it by Member. Said Member also agrees not to hold the Committee, its individual Members, Foresight Design Initiative, or the FSBA liable (directly or indirectly) for any claims, damages, liabilities, penalties, lawsuits and related costs and expenses arising out of action taken by Member in response to, or reliance upon, the Committee's opinion, advice or counsel.
4. In its efforts to keep FSBA Members apprised of potential Greenwashing claims, the Committee will also notify Members of any concerns, problems or issues raised by the public via any means of communication. To this end, the FSBA will solicit such comments from anyone who visits the FSBA Green Business Directory.

VI. Mediation of Inter-Member Disputes

1. FSBA members ("Accuser") will submit Greenwashing claims against other FSBA member organizations ("Accused") directly to the Committee. Claims should state, with specificity, the following:
   1. Specific claims/actions attributed to Accused that are alleged to constitute Greenwashing;
   2. Where/when and how such claims were made to the consuming public.
   3. The deceptive nature of the Accused's environmental marketing claims at issue.
   4. Accuser's basis for believing that such claims are deceptive, and
   5. Whether or not the Accuser suffered any damages (monetary or otherwise) from the allegedly deceptive marketing claims.
2. B. The Committee will be tasked with vetting claim to determine validity.
   1. Claims deemed initially valid (i.e., not based in fact and driven purely by personal vendetta) will be presented, privately, to the Accused by the Committee. At that time, the Accused will be informed of the Accuser's identity.
   2. Claims deemed invalid will not be revealed to the FSBA membership.
   3. The nature of valid claims, once they reach a resolution, and subsequent remedial measures taken by the Accused to insure that its marketing claims comply with this Policy, will be disclosed to the FSBA membership. Such disclosure will be made in the hopes that FSBA members can and will learn from the Accused's experiences. The identity of the Accused will be revealed to the FSBA membership only with the consent of the Accused.
3. Having been presented with a claim deemed initially valid by the Committee, the Accused will be afforded the opportunity to submit evidence to the Committee that defends, verifies, and legitimizes its marketing claims. For example, environmental marketing claims challenged as "unsubstantiated" could be supported by "competent and reliable evidence" (scientific or otherwise). Marketing claims alleged to be "irrelevant" may benefit from evidence (written or otherwise) justifying the qualifications (or lack thereof) made by Accused in connection with the subject product/service. Accused will have a reasonable time period in which to respond to the Committee's requests for substantiating information. The period for compliance is 45 days, which can be extended, for good cause shown, up to two additional 45-day periods.
4. In addition to evidence submitted by the Accused, the Committee will have the ability to perform its own investigation. The nature and scope of the investigatory powers afforded the Committee will include, but shall not be limited to, submission of written questionnaire to Accused and/or Accuser, review of evidence (written or otherwise) submitted by Accused and/or Accuser, site visits/inspections of member facilities and the ability to interview the Accuser, Accused and their employees. At Accused's request, a Confidentiality Agreement may be entered into between the Accused and the Committee, should proprietary information be disclosed during the Committee's investigation. Failure to comply with Committee efforts to investigate claims, or the engagement in behavior aimed at hindering a Committee investigation could result in expulsion from the Foresight Sustainable Business Alliance.
5. The Committee will present its findings, in writing, to both the Accused and Accuser concerning the validity of the Greenwashing claim(s) at issue. These findings will be based upon Committee deliberation as to evidence presented by the Accuser, evidence presented by the Accused, information gathered by the Committee in its investigation and any other information available to the Committee. The Committee's report will identify, with specificity, those actions taken and/or claims made by Accused ("Questionable Claims/Actions") that the Committee deems to violate this Policy, and constitute Greenwashing.
   1. In the instance that a Greenwashing claim is deemed invalid, the matter will be dismissed, and the Committee will take no further action.
   2. Should a Greenwashing claim be deemed valid, Accused will be given a reasonable Compliance Period (normally 60 days) to bring the Questionable Claims/Actions into compliance with the Committee findings and this Policy. Up to two additional 60 day Compliance Periods will be granted by the Committee (for a maximum of 180 days) for good cause shown. At the end of the Compliance Period(s), Accused will present to the Committee any and all evidence it has to support a finding, by the Committee, that the Questionable Claims/Actions comply with the Policy.
      1. Following the end of the Compliance Period(s), the Committee will issue its findings, based upon evidence available to it, as to whether or not Accused's Questionable Claims/Actions have been modified (or eliminated) so as to meet the requirements of this Policy. That is, a determination will be made if the deficiencies found by the Committee in Accused's environmental marketing activities have been remedied.
      2. During the Compliance Period(s), Accused is forbidden from publicly disseminating any environmental marketing claims or undertaking any marketing action that have been called into question by the Committee (i.e., engaging in or disseminating Questionable Claims/Actions). Accused's dissemination or taking of Questionable Claims/Actions to or with the public prior to a determination of compliance by the Committee could result in Accused's expulsion from the FSBA.
      3. Accused's failure to rectify its marketing claims within the Compliance Period(s) could result in its expulsion from the FSBA.
6. In the event that Accused is found to have undertaken Questionable Claims/Actions, the Committee (or specific members) can be engaged by Accused, for a fee, to assist in the process by which the Questionable Claims/Actions are brought into compliance with this Policy.

VII. Compilation of Greenwashing/Deceptive Trade Practice Claims against Non- FSBA Members

1. If the Committee is to compile and report information to the appropriate authorities regarding misleading environmental marketing by non-member organizations, individuals and entities, it is incumbent upon FSBA members to bring such activity to the attention of the Committee. Such claims should state, in writing and with specificity, the following:
   1. Specific environmental marketing claims/actions attributed to the non-member that are alleged to be fraudulent;
   2. Details as to where/when and how such claims were made to the consuming public (i.e., provide a copy of the specific advertisement or a paraphrased public statement).
   3. The deceptive or fraudulent nature of the environmental marketing claims at issue.
   4. Accuser's basis for believing that such claims are deceptive/fraudulent, and
   5. Whether or not the Accuser suffered any damages (monetary or otherwise) from the allegedly deceptive marketing claims.
2. Claims which are found to be justified - i.e., that the Committee has a reasonable basis to believe that concern deceptive or fraudulent environmental marketing claims, will be documented and pursued through those regulatory and legal channels available to the FSBA. The Committee will work with such bodies to assist in their preparation and filing of legal complaints against alleged Greenwashers.
3. As nature and scope of both the FSBA's relationship with outside agencies and the claims asserted against non- FSBA members become more clear, the Committee will be tasked with articulating a clear plan concerning the involvement (if any) of the media in pursuit of this goal.