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    GP Book of Greenwash

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    of 34
    SANDOZ @: se ol cmc ied Greenpeace Book of Infroduction.to Greenwash 1 A brief History of INC Responses to Environmental Problems 2 Greenwash Begins 2 The Greenwashing of Corporate Cuiture 3 Corporate Codes of Conduct 4 Responsible Care 4 ICC Business Chiarter for Sustainable Development 5 ‘Conduct Under the Corporate codes 5 Greenwash Goes Global: TNCs, the Earth Summit and the New World Order 6 Greenwash Ete — the BCSD 6 ‘The Greenwash Professionals — Burson-Marsteller 6 Lobbying for Profit at UNCED 7 Greenwash Exposed 8 How Big Are They? — The Role of TNCs in Environmental Destruction 9 The Greenwash Snapshots 10:28 1, Dupont 10-11 2.Shel 1213 3. Mifubishi 14-15 4, Solvay 16-17. 5, Rhane-Pouienc 18-19 6 Sandoz 20-21 7. General Motors 21-23 8, Westinghouse 24-26 9, ArocnZ 27-28 Responging to Greenwash 28-29 Endnotes. 30-32 ‘Ths paper wos written tor Greenpeace intemattonal by Kenny Bruno, Cocrdiinator of Greenpesace’s Hazardous Export/import Project, with primary assistance from Jed Greer. The author would Ike to thank Peg Stevenson for ecttoricl ossstance: and Kely ‘Rigg. Jeremy Leggett, Stefan Weber, Abigaal Costotice, La Finalal, Sandra Marquardt, Bil Barciay. Topsy Jewel, Steve Elsworth, ‘Marcle Mersky, Mary Bake, Jose Auguste Padua, John Wiis, Sara Larain, mi Mussack, Gobi Wiener, LenaHagetn, NandiniKatre, Jim Vatette, Francesco Martone, Nook’ Chora, Patrick Anderson, Sheldon Cohen. Alex Alen, Andy Booth. Peter Grinspoon. Lynn ‘Thorpe, Kim Roos, Tani Adams, Josh Kariier. ond Michelle Sheather for their comments on eaitler cratts of his paper. Thanks fo ely Hal for design ond production work. For acetlonal information conceming this port, Contact Greenpeace’s HEP Campaign at 1436 USt. NW Washington DC "20009, Tel. (202) 442-1177 Fax (202) 469-4507: or Greenpeace Intemational. Kelzersgracht 176, 1016 DW Amsterdam, Netheriands. ‘Greenpeace is cn intemational environmental organization decicated to protecting the earth cnd at the te it supports. ‘Thisrepot is made possible by more than four millén supporters worldwide. pees sees, “Industry will have the primary role in ‘making (sustainable development) work. We are the experts ‘at development.” — Fagor $. Woolard, ‘CEO, DuPont, 1990 7 Introduction to Greenwash ee leader in ozone destruction tokes creait for being a leader in ozone Protection. A giant oll company professes to take a “precautionary ‘approach’ to global warming. A major agrochemica! manufacturer trades in a pesticide so hazardous it has been banned in many countries, ‘while implying the company is helping to feed the hungry. A petrochemi- cal fim uses the waste from one polluting process os raw material for another.cndtboasts that thisisanimportantrecycinginitative. Acompany Cuts timber ftom natural nforest. replaces it with plantations of a single exotic species, ‘and calls he project “sustainable forest development.” And these companies, with tne help of their business associations and public relations firms, nelp set the agenda for an unprecedented gicbal negotiation on the crises of environment and development, This 's GREENWASH, where transnational corporations (INCs) are preserving and: ‘expanding their markets by posing os fiends of the envionment and feacer in the struggle to eradicate poverty. In 1992, greenwasn is going global through the participation of INCs in the United Nations Conference on the Environment and Development (UNCED) — the so-called Earth Summit. Withthe cooperation of governments and ot leaders of the United Nations, TNCs are working to control the definition of environmentalism and of sustainable development, and to insure that the agreements ond programs created by the Earth Summit are shaped. if not dictated, by the corporate agenda. Global corporations have made UNCED a part of their sttategy to convince the public that they have turned the comer info anew era of “green business.” This document provides evidence that INCS have not changed. We trace the phenomenon of greenwash, examine comporate “sel-eguiation,” detail the activities of ‘comorate lobbying groups in the UNCED process, and look at the words and deeds of nine corporations which proclaim their environmentaism, Among the many fincings of this Greenpeace report are: DuPont executives stil ‘We are considered good citizens. That which is good for us also_has to be good for the country.” —@hodia Presiaent Edson Vaz Musa is ‘Isaw the tucks from Rhodia when we came out of school aroundelevenatnight. Theyaump allthatfithy waste in the forest.. We geta northwesterly wind here. It Blows very strongly. The wind cames the chemical dust to the vilage, and we ailgetitchy... he authontios have just put up assign: "Swimming prohibited, The soll 's Contaminated. Our trees don’t bear fruit anymore, —Adauto Alves de Nobregars shone Poulens's Creanwash fable (ti Catasmonns wi euaatao | Phosphate pollution, mostly stemming from detergent use, is d_ major couse of environmental degradation of lakes, rivers. nd seas. When phosphate use restrictions in Germany, Switzertandand ttaly arectiy treatenedkthone Poulenc’ sales, the company hired the public relations firm Hil ond Knowiton to mount a campaign to thwart Feguiations on phosphatesin France. The ed campaign, featuring awolfinsheep’sclothing pedding phosphate- free detergent, tels youthat “phosphates, rom the point ofview of ...envronmentalimpact, give the best results.” The campaign worked. in 1991. the French govern- ment suspended legislation against phosphate use. Who is the real wolfin sheep's clothing? feeq_ innocence a bon dos. {tis almost impossible to Gescribe the magnitude of the enwronmental criss in Cupatao and its impact on res dents Amonitoring device in the Cubatao sum of Vila Paris has recorded daly doses of 473 tons of carbon dioxide, 182 tons of sulfur, 148 tons of particulate matter, 41 tons of tittogen oxide. and3 tons ofhydrocarbons. The cityhas the highest level of acid rain ever recorded. 2 Emergency ar quaity ciens are decioredin Cubatoo ‘dozens of times each year. In July of 91 the governor of Sao Paolo state - suspended industrial activity in Cubatao during a thermal inversion which elevated ‘the particulate content of the air to 2000 parts per ‘cublemeter (66parisper cubic foot). The Intemational standard for."good quality” air s 50 ppcm, and the norm for a chronically polluted city lke Sao Paulo is 70, Ppem. s Some residents are exposed each day to found 1200 particulates per cubic meter, more than twice levels that the World Health Organization says Provoke “excess mortality.” The city sues the highest infant death rate in Brazi with ‘one third of chicten not suniving ther fist year, A study released in the 80s showed that 8% of Ive bith babies suffered ffom such cbnoralties as spinal problems, missing ‘bones, cndibran deficiencies s Overone-thirdofCubatae’s ‘The Rhine is now dead. The whole ecosystems destroyedduetothisaccident.” —Walter Hermann, Chief inspector, Rhine River Police November 1986 7 Headquarters: CH-4002, Lichstrasse 35, Basel, Switzeriand tel.:011~41-61-324-11-11 foxx: O11-41-61-324-80-01 thas operations in 54 couniries. ‘Signer of Responsible Care and the ICC Rotterdam Chatter [= cowht Sandoz advertisement depicts a forest and tranquil pond, withaclean river dominating the scene.» The choice of a fiver for Sandoz's image is conspicuous: ‘Sandoz is best known as the company: responsible for the worst river spill in history: In the 1986 catastrophe, a chemical spill near Basel, Switzeriand. contaminated the: Rhine River—xiling fish, widlife ond plants for hundreds of miles. After the Rhine spill, in which thirty tons of extremely hazardous. orgenophosphates named disuifoton and parathion were washed into the river, Sandoz “cleaned up." tsoperationsby moving 60% ofits organophosphate. production to Resende, Brazil. In 1989, another ton of Sandoz Gisuifoton neaty spiled into the Rhine. Shortly thereafter, Sandoz moved the rest of their organophosphate production to’ Braz and to India. « Apparently, the company believes that tis legitimate to move a production process which destroyed a river ecosystem in Europe to Latin America and Asia. Sandoz “Tests” Biotechnology Abroad Sandozisone of many TINCsinvolvedin biotechnology. “We didn’t think about the Rhine.” it’s Austrian subsidiary Biochemie GmbHisnow engaged Giimst Wessendorf. information officer, in seling bovine growth hormone (BGH) under a license Sandoz November 1986 2 from Monsanto incentrai and eastem Europe. BGHisthe fist genetically engineered agricututatproduct toreach the market. itis not icensed in Switzerland or Austia and the European Community has recently extended a moratorium on the product by two years.s The reason is simple: BGH, designed to inctease mik production in cows, has not been approved fer use in many countries because its sks have not been fuly investigated. High-producing mik cowshave shown elevated susceptbilty to infectious diseases. 1f BGH Use increases health problems in cattle, antibiotic use wil also rise. Cows can ‘accumulate anti biotic resistant organisms which, when transferredito humans through ‘milk, cause serious infections which are dificult ¥o treat precisely because of antibiotic resistance. BGH's effects on infants are of particularly great concen. Biotechnology companies ike Sandoz are using Eastem Europe andthe Third Wong ‘as testing grounds for genetic products whose safety isnot proven. in the case of BGH, the profits wil belong fo Sandoz. and the risks to the farmers. consumers and chiliren of, ther nations, | “Appropriate” Genetic Technology? BGH, like many TNC technologies. may be incompatible with the needs of those it Issupposeditohelp. Because ofits high cost, BGH willbe impossible touse for many small- scale farmers who -are most in need of the income and nuttition that milk production ‘companies in the donor country. : nmany Counties, concentration of cattte can and does lead to the: conversion of coon fal lend! fo posture cnd the feeding of grain fo cattle rather then he hungry sane een Gtedmik production can eisplace cheaper. more troetional potsin sources, while not Benefiting the majority of the rural poor» » Sandoz and other biotechcompanies promote ventures genetic engi Heaciquarters: 3044 W. Grand 8ivd,, Detroit. MI 48202 tol: 313-556-5000 fox 313-556-5168 Products: motor vehicles ‘Signer of the ICC Rotferciam Charter GM, Cars and the Environment AtGeneralMotors, we recognize the effects that cas and {Rofmonstocturehaveontne envionment We understand relationshipbetterthan any othercarmakerinthe word,” —GM Earth Day 1990 advertsement General Motors ought to understand—they are the world’s number one manufacturer of motor vehicles. and motor vehicles are in turn the world'snumberone source of air pollution. The world's 560 million cars, frucks.cnd commercial vehicles consume one-thitd of the world's ol, 1 Generai Motors vehicles release cn estimated 2% of the carbon dioxide emittedinto the air ecCh year. In the Organization for Economic Coopera- NIN. Carsare the fastest growing source of a polution and energy tlonand Development (OECD) countries,GMaccounts new teres cenerciMeton hasrepectedtyfoughtaganst for Gn estimated 11% oF the carbon monoxide, 8% of States. Seton, MCRNEY Onc ar emsionsstancarcsin ne United the nitrogen onides’ net ois ‘of the hydrocarbons emitted by vehicles annually. z The American Lung Association calculates that the health costs attiout. ‘ble to vehicle emissions in the US alone is $25 billion per year. » LGM 2aly Lndietstood the ettecis of thelr products on the environment, we might logically expect to see more emphasis on fusl efficiency. renewable fusls, ond oot Pubic transportation and oieycies. However, GM is astaunch opponent of raising fugleconomy standords—tney anc other automakers have consstenty. ond sueeeee Ruy Pressured the US goverment fo rol back fuel economy standlars and toned Tube, Protts.cs a result, in 1986, tne National Highway Trafic Safety Adminisnenon ei “1 work at Rimir, General Motors plant... am very concemed about the contamination caused by toxic || chemicals that come out of the Rimir plant. At the ‘Rimir plant we paint automobile tun the solvent through the guns ‘and lines to' purge the paint...All ofthe liquid solvents go down into the floor drain andintoapipe thatleadstoacanal on the side of the Rimi plant.” anonymous GM worker 12 “For more than three decades, GM has seen a clean and healthy ‘environment as a top priority.” Robert Stempel, GM Chairman ACEO 3 of private automobiles and a potentially huge market for GM. But the company wilnot commit themseives to putting the prototype into procuction. Spreading Car Dependency During the first haf of this century. GM and other large corporations bought up rail companies and cismantied cublic rail ransport in forty-five US citiesin order toincrease: the demand for private vehicles. The environmental and social etfects of Amencan car dependence are wel known—the US and Canada are the largest per copita users of. gasoline in the world, and cors continue fo be both the fastest-growing energy demand and the fastest growing air pollution source in North America. in the second haf of this century, GM and other automakers _ have steadily ‘expanded into Latin America, where GM \s the largest US vehicle manufacturer, Road ‘and highway construction in the region has diverted funds from pubic transportation in cies where the majority of the population cannot afford a cor. in Broz. itis estimated that in order for the car market to expand the income of the top 10% of the population would have to increase, worsening the gap between rich and poor. s The effect that the lackofaccessto transithason the majorty ofthe urban poorisprofound—contraling thelr access 10 jobs. health care, and basic services. Commutes of two hours of more ineach direction are routine for people who come from the shantytownson the outskirts cof Sao Paolo and other booming Latin American cities into the centerto work. + Unsustainable Jobs, Lasting Pollution ‘GM hos pledged to “knock the nell out of the competition” ints effort to become: the largest US vehicle manufacturer outside the United States. 7 To cut costs. ne com- pany slaying off workers in the US—30 000 in the late 1980s anc planned 75,000, or 18% of ffs workforce by the mid-1990s, Facies are being moved fo Mexico and.cther ‘counties where wages are a fraction of those in the US.e GM’s movement nas come in spite of economic incentives offered by communities ond wage ond benefit ‘concessions which have been given by autoworkersin the US, throughout the late 180s ‘and 1990s. In North Tarytown, New York. where years of concessions given by the town. ‘and union failed to prevent closure of the local GM plant, one official said “We're left holding the bag, and the bag is empty.” + ‘Comminities which do become the sight of aM ptant can expect tobeleft with ‘acontaminated environment. Wastewater discharges froma GM piantin Matamoros, Mexico were foundto have extremely high levels—6600 times USstandards—of the toxic solvent xylene, which can cause respicatory initation, armnesia, brain hemonhages, infernciibleeding, and domaoge to the lung, liver. and kidneys. The discharges went into cnagricutturaldranage canal that leads tothe Rio Grande, asource of drinking water. 10 In 1990, the EPA issued a $78 milion cleanup order fo GM to fora foundry in Massena, New York. The fociity and surrounding areas had been contaminated with the ‘equivalent of 55.000 truckloads of PCBs and other toxic chemicals. in 1991. the US EPA fined GM and two New York state companies $35.4 millon for improperly disposing of PCB-contominated sludge there. This was one of the largest penotties everlevied bythe EPA. In 1990, GM paid the Occupational Heatth and Safety Administration $360,000 for Gileged violations of heatth and safety rules ct US plants. in 1987, GM paid $500,000 for similar violations. 1 In Lordstown, Ohio, a branchot tne United Auto Workers organized Workers Against Toxic Chemical Hazards (WATCH) in response tolack of action on chemicalsatety issues inthe workplace at a General Motors plont. Milions of GM products have violated US vehicle emissions standards. From 1982 10 190 Mrecaledorwascrderedtorecall? § mition cars. Over two-thircswore for excessively high emissions ot nitrogen oxides, carbon monoxide, and hycfo- carbons; he rest ware for fauity emission contol systems." USEPA Recall Orders oF GM Voluntary Recalls 1982-1990; 2,902,000 vehicles for excessive emissions of nitrogen oxides. 1,178,000 vehicles for defective cataiytic converters. Record of GM recalls and recat orders in Environment Reporter on relevant dates or in United Press international. * | Motor Vehicle Atr Pollution Vehicle Exhaust Environmental Health Effects Pollutant Ettects ‘Carbon Monoxide Helps increase the Lethal in large doses; uiidup of methane, affects central nervous Gnimoortant green- system: aggravates heart house gas. dkorders; impairs oxygen canyingcapacity ofbiood, Nitrogen Oxides Acid oin, contibutes _inttate orimpairrespiration: tobbulidup of ground-_lessen resistance to fevelozone.agreen- _ infection. (Ozone causes house gas 2000 mes eye, nose and throat as.effective as carbon _ittationandcan damage dioxide in retaining vegetation. earth's heat. Hydrocarbons Contributes to buid- Drowsiness coughing: up of grouncHevel eye inttation, ‘zone. (Oither toxic vehicle emissions include benzene, aldehydes, and lead, ‘Adapted from Greenpeace Intemational report ‘The Environmental Imoact of the Car" p. 32 Westin house lectric Corvoration E ‘CEO: Poul Lego. sotory: $1,681,252 waste disposal, n the. US., when people hear the name “Westinghouse” they think of | hold appliances. Only.rarely does the company publicze another | ‘ide ofits business: nuclear weapons end reacto’s. Westinghouse produces nuclear propulsion systems for mittary submarines and nuclear-armed surface ships os well os launching systems for intercontinental ballistic missles ond cruse missiles such os the MX and Trident. » The company has operated nuclear weapons facities for the U.S. government at Hanford, Washington: Femaid, Ohio; idaho Fails, Idaho and Savannah River, South Carolina. The most optimistic estimate for cleanup costs for contamination ‘at Hanford aicne is $30 bilion over 30 years, ifindéed cleanup can be done at al.2 The ‘environmental damage at US. nuclear weapons production faciltiesisso monumental that it cannot be greenwashed away. But in is civilian businesses, Westinghouse has. joined the corporate greenwash brigade. Nuclear Greenwash “Our industy (nuclear power) will become one of the principal symbols of the entire ‘environmental decade. We can be cast osits hero.” Richard Slember, Vice President & General Manager ‘Westinghouse’s Eneray Systems Business Unit ‘pioneer in the development of nuclear reactors throughout the world, Westinghouse now touts nuclear power not only as the cnswer to global energy needs but aiso as a savior of the environment. ‘Becouse they burn no fossi fuels, Westinghouse suggests, nuciear plants are an answer to the greenhouse effect. « The US. nuclearlobby which ‘Westinghouse helps fund says that nuclear power can help stop global warring while itsatisfies the demandfor electricity. Arecentadvertisementtyy thenuclear lobby group USCounct for Energy Awareness showed a bucolic country scene with anuciear plant inthe background ond the caption: “Treesaren’tthe ontypionis that are good forthe atmosphere.” s This is greenwash at ts most obsurd. In'simpie terms, nuclear power cannot stop global warming, Nuclear reactors generate electrictty—only about one-sixth of greenhouse gases come frombuming fossi fuels for electricity. Researchhasshown that acrash program to offset carbon emissions from coalfred electicty generators clone would require the construction of 5000 nuclearreactors over thenext three decades, most of themin the Southatacostof $144 boiion in capital expenses annually and electricity generation costs of $525 bilion pet year. « Even with such a construction program, carbon dioxide emissions giobaty would : stit ise. In fact analysts have theorized that spending on nucieor power can worsen global warming by: draining energy investment away from energy efficiency and renewable energy. For each $100 spent on nuclear power one mettic ton of carbon is effectively released in fo the atmosphere that could have been avoided had the money been spent on energy efficiency. Finally, such anuciear construction program ‘would generate 100,000tons of high-level radioactive waste per year. with no resolution to tne nuclear waste criss in sight. 7 “ifwe can't resolve what we're going to do with the waste, then we have no business generating it. —Cecil Andius, former US Secretary of the interiors Pee at Trees aren't the only plants that are good ior the atmosphere, nit urn ante ‘Nuclear energy means cleaner ain Westinghouse in the Phi lippines Westinghouse and other companies have promoted and exported nuclear power fo countres in Asia and Latin America cna Westinghouse is currently pushing to bul feactors in Central and Easter Europe. The Philppines experience with Westinghouse illustrative. In 1976, Westinghouse unempioyment. and matnutrition are pervasive, + Seventy percent of the Philippine population, primarily landless tenants ond Westinghouse is a ‘majercontributorto ‘the lobby group US ‘Couneil for Energy Awareness, whose @d campaigns Promote nuclear Power as.ah environmentally subsistence formers; consume atiny fraction ofthe country’selectricily. In fact, outside ‘business and miltary interests stuated near the piant were to be the real beneficiaries. “Thereactorisnot designedito supply electricty toour people. isforClark Airforce Base ond the Subic Naval Base and the Bataan free trade zone, where foreign companies make textiles for foreign markets—most of them American.” —Nicky Perias, Philpine Movement forEnvironmental Protection.1979:0 Hardest hit by the Bataan reactor were the 13,000 peor vilagers displaced by the Plant's construction. “Many of ys have ne more iand to til. The fonds where we used fo get our food and livelihood from are either bought atlowprice or confiscated because they wereneeded by the plant. Before, the fishermen usedito fish nearthe shore. (The government) has

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