Greenwashing practices and ESG reporting: an international review

Abstract

PurposeThis study provides an overview of the numerous theoretical facets of greenwashing (GW) and their relationship with sustainability, social responsibility and sustainable development. This study highlights the actions of governments and international organizations in GW. It delves into the sins of GW and the various metrics used in the literature to measure them. It seeks to distinguish between sustainability reporting and GW practices by offering a critical perspective on GW.Design/methodology/approachThis study measures GW practices at the international level and compares them with the ESG disclosure score. The main determinants of GW are assessed by examining the impact of a set of variables on GW. The influence of various sources used to gather the data were assessed using multiple regression analysis.FindingsFactors such as protocols and conventions, media role and the strength of environmental policies have a considerable and positive impact on the occurrence of GW.Research limitations/implicationsOwing to the research method chosen for measuring variables such as GW scores, procedures for measuring GW in companies should be developed. Multicriteria modeling could be a suitable approach to address the sorting or portfolio approach.Originality/valueThis study provides a theoretical basis for examining GW from a business-economic standpoint. It presents various perspectives on GW, analyzes relevant theories and explores potential GW strategies. This study highlights the connection between GW and various factors, including the influence of conventions, role of the media and strength of environmental policies.