Greenwash

Greenwash is a term used to describe the practice of companies deceptively promoting their products and policies as environmentally friendly. For example, presenting cost cuts as reductions in use of resources. It is clear that many companies are cynically seeking to exploit growing consumer demand for green, ethical and fair trade goods and services by painting themselves as having a genuine concern for the environment. Underneath this exterior, the true motive is profit.

Often, more time and money is devoted to advertising being green, rather than actually spending resources on environmentally sound practices.

We have written previous articles about large corporations who have promoted themselves as eco-friendly, responsible and ethical through large advertising budgets, whilst pursuing policies that are actually harmful to the planet and communities and ‘greenwash’ is a term that has emerged to describe these cynical attempts to exploit consumer concerns regarding the environment.

That’s why it’s so important to have reliable, independent and unbiased information sources that allow consumers to make informed decisions about where to buy goods and services. We believe that our directory is making a worthwhile contribution in this area.

We recently came across a company called Provident Financial, which is included in the Dow Jones Sustainability Index (DJSI). The DJSI comprises of the top 10% of companies from around the globe in terms of combining financial profitability with awareness and management of social, environmental and ethical issues. A spokesperson at Provident Financial commented: "We are delighted that we have been chosen for continued inclusion in the DJSI… our inclusion on the main global sustainability indices illustrates that we are well positioned to manage the social, environmental and ethical risks that are material to our operations, products and services."

Provident Financial provides home credit through its Provident Personal Credit brand, which offers small, unsecured loans, typically for sums of between £100 and £500. Loans are delivered to the customer’s home by an agent who then calls every week to collect the repayments. Their website gives a loan example (September 2009): If you borrow £300, you will pay back £10.50 over 52 weeks, which adds up to £546. Typical 272.2% APR

Our question - is it ethical to lend money to the poorest people in society at an APR of 272%?

Dr Gary Robertshaw
The Green Providers Directory