Greenwashing is a thing

Much is being written on the topic of greenwashing these days. The fast-growing interest in environmental, social, and governance (ESG) practices has driven companies to become more vocal about their sustainability-related programs and initiatives, leading to the proliferation of claims that are not always substantiated. This creates corporate reputational and legal risks that, when they materialize, carry significant financial consequences. At the market level, generalized greenwashing practices may also contribute to system-level risks. 

This Research Note proposes to level set the current understanding of what greenwashing is, why it happens, and the measures to avoid it. It offers a framework with which companies can understand and contextualize the many headlines and rapid developments with regards to greenwashing happening across the globe, and what they mean for them.