Greenwashing is not a new form of consumer deception. There are, however, improving means of identifying companies that seek to deceive, as well as ways to recognize and reward those that provide true value with high-performance, green building.
In September 2015, the FTC sent warnings to five providers of environmental certification seals and businesses that use them, alerting them to the “agency’s concerns that the seals could be considered deceptive and may not comply with the FTC’s Green Guides.” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, stated, “Environmental seals and certifications matter to people who want to shop green … [b]ut if the seals’ claims are broader than the products’ benefits, they can deceive people.” The FTC also provided guidance on the appropriate use of “performing seals.” The FTC emphasized the need for marketers to clearly and prominently state the basis of a green seal to avoid any “implied” general environmental benefit claims that cannot be substantiated.
Greenwashing is a consumer concern, and, increasingly, one for home buyers. NBC2, a Florida NBC affiliate, recently investigated greenwashing in the southwest Florida real estate market to highlight problems with builders falsely touting their homes as green. Real estate appraiser and high-performance home valuation expert Sandy Adomatis told buyers not to “be afraid to question the [builders] and ask them to put in writing what they have done and provide you with documents.” She also suggested that buyers ask if a home is third-party certified to the National Green Building Standard (NGBS) to ensure a buyer gets the green home they expect.
What does this mean for builders? First, it means home buyers are interested in and looking for green homes. Savvy home buyers will be searching websites like NGBS.com to find a better home that provides the greatest value for their investment.
If you are building green homes, back up your green marketing claims with the FTC-compliant NGBS Green certification mark. If you want to build green homes but are not sure where to start, check out the NGBS Green Builder’s Resource Guide. A recent report by the North Carolina Building Performance Association found that high-performance homes and buildings in the state sold for a 9.5% price premium over non-certified green homes. Builders should reap those benefits. Of the five certification and rating programs included in the report’s sale price analysis, NGBS Green had the highest average sale price at $143.44 per square foot.
As the song says, “cheaters gonna cheat.” To set yourself apart from those who seek to deceive, rely on a credible third party to speak for you.
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