Greenwashing Research Articles

Greenwashing practices and ESG reporting: an international review

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.

Greenwashing and the purchase behavior toward electric motorbikes: The role of eco-literacy

ABSTRACT Nowadays, due to the increasing green trends, numerous businesses in the automobile industry adopt greenwashing as a primary strategy to appear environmentally conscious, despite their production processes like manufacturing lithium-ion batteries, which are causing significant environmental pollution. By combining three theories as signaling, legitimacy, and psychological contract, the study focuses on solving the previous research gaps when examining the influence of greenwashing (GW), green brand image (GBI), green skepticism (GS), green confusion (GC), perceived betrayal (PB), eco-literacy (EL) on the purchase intention (PI) towards electric motorbikes among Vietnamese consumers. The study employed a convenient random sampling method with a sample size of 535 consumers in Vietnam. A quantitative research method and Structural Equation Modeling (SEM) approach were used to analyze the data using SmartPLS software. The findings reveal that GW significantly influences the PI, and GBI, GS, GC, and PB partial mediate the correlation. Additionally, the study discovered the significant moderating role of GW in the correlation between GW to PI, GW to GS, and GW to PB. Based on the findings, the managers can apply marketing strategies to encourage consumers’ purchase intention and avoid greenwashing activities. Then, the theoretical implications and directions for future research have been proposed.

Can green finance policy curb corporate ESG report “green washing”? — Experiential evidence from Chinese listed companies

ABSTRACT In recent years, ‘green washing’ in ESG reports emerge more intensely, which seriously interferes with normal capital investment behaviour. This paper takes the Chinese A-share listed companies in 2013–2020 as a research sample and explores the relationship between investors’ attention and the ‘green washing’ of the enterprise ESG report. Research shows that green financial policies significantly encourage the ESG report ‘green washing’ behaviour of heavy-polluting enterprises. The primary cause is heavy-polluting enterprises are more motivated to relieve financial pressure through ESG report ‘green washing’ under the pressure of green financial policies. The conclusion of this paper shows that green financial policies to promote the green transformation of enterprises may negatively induce enterprises to falsely disclose ESG information.

Analysis and Governance of "Greenwashing" Behavior in China's Green Bond Market

With the Chinese government and leaders attaching great importance to the construction of ecological civilization and the green financial market, green bonds have become an important tool to promote green development. However, the problem of "green washing" in the market not only erodes investors' trust in the market, but also damages the credibility and actual effectiveness of green finance, posing a potential threat to the continuous promotion of ecological civilization construction. This article analyzes two typical behaviors of "greenwashing" in the Chinese green bond market: false labeling of green projects and opaque use of funds, and explores their causes, involving problems such as incomplete green bond standard formulation and certification system, weak regulatory crackdown, short-term interest driven corporate behavior, insufficient public green awareness and supervision. Targeted response strategies have been proposed: firstly, to improve the green bond standard formulation and certification system, ensuring the authenticity of green projects; Secondly, enhance regulatory efforts and punishment measures, and build a rigorous legal environment; The third is to improve the transparency of information disclosure, requiring enterprises to regularly disclose the progress of projects and the use of funds; The fourth is to establish a sound investor protection mechanism and safeguard the legitimate rights and interests of investors. Through these measures, it is possible to effectively regulate and curb "green washing" behavior, and promote the sustainable development of the green bond market.

What gets measured well is managed well: Determining a hierarchy of interdependencies of environmental elements for effective environmental performance

AbstractClimate effects of greenhouse gas emissions, land use, water use, energy use, and waste are a universal concern. With disparate reporting firms and a lack of universal measures of corporate sustainability, environmental sustainability for businesses is an afterthought, with minimal consequences for inaccurate reporting, or green washing and brown washing. This research explores four widely used reporting measures to first derive 12 universally applicable elements from five sustainability themes of emissions, land, water, energy, and waste. Using expert inputs and existing literature, the identified elements are subjected to interpretive structural modeling (ISM) to develop a framework of interdependencies among the elements and their influence on emissions. The framework identifies crucial elements, beyond carbon emissions, that have greater potential to reduce the climate impact of economic activity. Although aware of energy use implications, businesses have long ignored the indirect but catastrophic effects of non‐hazardous waste, the second level element, on climate change.

The Practice of Green Washing Motivated by Financial Constraints: An Analysis in Global Economies

Objective: The aim of this study is to analyze if the practice of Greenwashing is related to the level of financial constraints of companies in the capital market. Theoretical Framework: This section presents the main concepts and theories that underpin the research. Relevant theories, models, or frameworks are highlighted, providing a solid foundation for understanding the research context. Method: To achieve this objective, this research proposes an econometric model that seeks to relate variables representing financial constraint conditions to the Greenwash score. For this purpose, financial data from 3,574 companies from 21 countries were analyzed for the period between 2016 and 2022. The proposed model in the research was analyzed through multiple linear regression with panel data. Results and Discussion: The results obtained allow inferring that the variables used to capture the level of financial constraint of companies are significantly related to the practice of Greenwashing. However, the Financial Risk and Debt Cost variables were negatively associated with the Greenwash score, showing a relationship with the dependent variable diverging from what was expected. Research Implications: The results of this research allow inferring for the analyzed sample that the practice of Greenwashing is impacted by the financial constraint situation of companies. Such a result can contribute to academic studies on best ESG practices and provide support for improving market monitoring regarding the manipulation of Corporate Social Responsibility actions by companies. Originality/Value: This study contributes to the literature by expanding the analysis of Greenwashing practice to a significant and representative sample of companies in relation to the largest global economies. The relevance and value of this research are evidenced by evaluating aspects of corporate management beyond financial ones, relating environmental and social aspects to the financial risks of companies in the capital market.

Research on the negative effect of product scarcity appeals on the purchase intention of green products and its mechanism.

Studies have shown that product scarcity appeals affect consumers' perceived scarcity, willingness to pay, and other responses, and that scarcity appeal has the potential to cause consumers to pay higher attention to the product. However, there is a lack of research on the psychological responses of consumers to scarcity appeal from the perspective of perceived green washing. In this paper, three experiments are conducted to demonstrate the impact of product scarcity appeals on consumers' purchase intentions. The research shows that when green products use product scarcity appeals as a strategy, consumers' purchase intentions are affected, but consumers' information processing about the product is the most important determinant. Perceived green washing mediates the negative effect of product scarcity appeals on green product purchase intentions. And impression management motives moderate the negative effect of product scarcity appeals on green product purchase intentions. The findings of the study not only help companies to effectively adopt the right advertising strategies to improve their marketing effectiveness, but also help them to explore the market for green products.

Oriental beech decline caused by Brenneria alni

AbstractHyrcanian forests comprise a long strip along the southern coast of the Caspian Sea in northern Iran. Oriental beech (Fagus orientalis) is one of the most valuable forest tree species in the Hyrcanian forests. Bark necrosis and bleeding spots of oriental beech were observed in Savadkuh forests in Mazandaran province during summer 2021. Ten samples were collected from symptomatic oriental beech trees. The bark canker symptoms included stem tissue necrosis, dark brown to black spots on the trunk, bleeding with dark exudates and dark lesions in the inner bark. Twenty‐six strains of culturable bacteria were isolated from the samples which in culture were predominantly round, convex, smooth with entire margins on nutrient agar and a metallic green sheen pigment on eosin‐methylene blue (EMB) agar. Fourteen strains induced necrosis and browning of the tissues around the inoculation sites on acorns after 2 weeks. Five representative strains also caused dieback in twigs of oriental beech 3 weeks after inoculation. These bacteria were Gram‐negative, catalase positive and oxidase negative. All strains produced colonies with a green metallic sheen on EMB agar. Strains were negative in tests for starch and gelatine hydrolysis or production of levan. A phylogenetic tree based on concatenated sequences of gyrB and infB genes, of representative strains well as in each of the single gene‐based phylogenetic trees, indicated that these strains clustered with Brenneria alni NCPPB 3934T with high bootstrap values. To the best of our knowledge, this is the first report of B. alni associated with bark necrosis and bleeding spots on oriental beech.

Voting with a Wallet: A Study on Consumer Impact on Green Washing

Voting with a Wallet: A Study on Consumer Impact on Green Washing

Does the issuance of green bonds nudge environmental responsibility engagements? Evidence from the Chinese green bond market

Policymakers and managers have increasingly adopted green bonds as a direct financing tool to address environmental degradation and climate change in emerging economies; however, the increasing green washing sentiments in the green bond market raise questions on whether green bonds can nudge polluting businesses to achieve green transformation. Therefore, this study joins the controversial debate by investigating the impact of green bond issuance on corporate environmental responsibilities and the potential impact mechanisms and economic consequences. Using the data of Chinese listed enterprises from 2011 to 2020 and the staggered issuance of green bonds as plausibly exogenous shocks, we determine that the enterprises in the experimental group that issued green bonds increased their environmental performance compared to their counterparts. Furthermore, this positive link is maintains after a series of robustness tests. Moreover, we identify that green bond issuance plausibly enhances environmental responsibility engagements through two governance channels, namely, internal management and external supervision. This beneficial effect appears more pronounced for subsamples of firms in low-polluting industries, without environmental subsidies and with higher managerial abilities. Furthermore, economic consequences indicate that the issuance of green bonds primarily motivates speculative shareholder benefits, as evidenced by short-term increases in stock yields but with limited impact on the short-run financial performance. Overall, these findings offer new evidence supporting that green financing tools could play a helpful hand toward environmental sustainability.

Greenwashing or Game Changer of Corporatesustainability: Impact on Environment, Society, and Governance (ESG)

The argument raised in green washing research that the voluntary CESR (Corporate Environmental Social Responsibility) approach stimulates the spread of greenwashing is our keyfinding leading to ourtheory contribution. The voluntary idea of CESR remains popular in CESR literature and searches to be an unclear field which allows for misleading 'green' communication. As public awareness about green washing has increased over the last two decades, likewise has academic research, and there is now a significant amount of researchaddressing greenwashing issues. In this paper, we analyse and evaluate green washing research to provide a review of trends and progress in the field and an overview of the empirical andtheoretical findings reported in previous studies. As a result, we argue that greenwashing couldbe better prevented through a combination of voluntary and mandatory approaches. The freshapproach should encourage innovative and compelling corporate CESR activities while definingthe boundaries and regulations for their achievements and communication, as companies may break legislation by over stretching CESR reports. They are vulner able to the phenomena recognised in the literature as "green washing" because of their stake holders' perceptions. Consequently, this paper aims to exam in ethephenomena of green washing and trace its development in the current body of research.

Exploring the Financial Ramifications of Green Washing in Corporate Practice: Unveiling the True Cost

This study looks at the financial effects of "green washing" in business practices, illuminating the dishonest marketing techniques used by businesses to give the impression that they are environmentally conscious. In addition to undermining credibility, green washing—the practice of misrepresenting to investors and customers the environmental impact of goods and services—carries substantialfinancial risks for the participating companies. The problem is made worse by the absence of independent verification, standardized measurements, and regulatory monitoring, which makes it difficult for stakeholders to distinguish between real sustainability initiatives and phony green washing strategies. This study presents a complete strategy to combat green washing, based on case studies and existing literature. It includes increased governmental monitoring, requirements for openness, consumer education, and rewards for real sustainability efforts. By encouraging openness and exposing the true cost of green washing.

A Study on Awareness about Green Washing in Oxford College

The knowledge of environmental issues and green washing has been of great prominence in the twenty-first century. The main focus of this study is on the effects of green washing on the environment and public health, as well as the awareness among oxford college students. The goal was to examine the student awareness, green product consumption, and the effects of greenwashing. Primary data was the study's main source of obtaining data , and it was obtained using a questionnaire. Both online and offline modes of responses were obtained. The survey revealed that many students are still unaware of the concept of "green washing," and it is necessary to raise awareness of it among the students.

Importance 0f Green Washing and its Impact on Consumers and Businesses

One of the important factors contributing to success of organizations is how closely ethical values are woven into their organizational culture. In the long run an ethical firm builds loyalty and trust among its customers. But even the largest of the corporate seem to overlook these ethical values by indulging in greater profiteering through green washing activities. The awareness about the drawbacks of green washing will help the consumers to make an informed decision in favor of genuine green products. It will also help the companies by educating them on how green washing activities negatively impact their brand image and brand loyalty eventually resulting in decreased revenues and market share. The rapid industrialization and globalization in past decade has led to severe environmental degradation. This has become a cause of great concern for individuals, companies and governments worldwide. Consumers are becoming highly conscious about the products which they purchase and their environmental impacts, which is clearly evident in their purchase behaviour.The acceptance of green products by increased number of consumers has led the manufacturers to adopt eco-friendly practices not only in the production process but also in the end product itself. Green marketing has been considered as the most preferred strategy to attract a huge mass of eco-friendly customers. n marketing.

Ethical Decision Making and Sustainable Development in Green Washing

The pursuit of sustainability has become a pillar of corporate responsibility in the quickly changing business environment of today. But despite the admirable attempts to embrace eco-friendly behaviors, a disturbing occurrence called "greenwashing" endures. The false representation of a company's environmental activities as more environmentally friendly than they actually are is known as "greenwashing." In this piece, we explore the vital nexus between sustainable development, moral decision-making, and the widespread problem of greenwashing. The foundation of corporate conduct is ethical decision-making, which is based on principles like accountability, respect, justice, and reliability. This paradigm gives company owners the ability to tackle problems fairly and with concern for all parties involved, carefully assessing theiroptions to make moral decisions. In addition to fostering trust, fostering an ethical culture makes ensuring that business

Corporate Green Washing and its Deleterious Impact on Environmental Society and Ethical Business Decision – in India

Current research finds that, inthe context of the Sustainable Development Goals (SDGs), consumers, governments, and other commercial organizations are embracing CSR to enhance their corporate image with environmental components that are not trulyimplemented through greenwashing. India is confronted with environmental challenges such escalating air pollution, declining food security and pollution from e-waste disposal. The WHO's 24-Hour Air Quality Guidelines' suggested limit for PM2.5 concentration I snow being exceeded by 2.8 times in India. This report discusses the findings of an empirical investigation on the relationship between environmental sustain ability and the degree of business relationships, the impact of green washing on climate change and the connection between CSR and ethical decision-making. Based on the data gathered from 200 respondents to a used questionnaire a quantitative, causal, cross-sectional study was carried out, using SPSS24.0. This paper enriches the study with further scope of analyses overemployee’sperceptionoverthe SDG.

Green Washing Won't Wash

This research paper explores greenwashing, a deceptive marketing practice employed by corporations to create a misleading perception of their environmental responsibility. Through a comprehensive analysis of academic literature, case studies, and industry reports, this paper highlights the various tactics companies use to greenwash their products and services. Also, itidentifies greenwashing strategies and promotes ethical practices. Moreover, it provides consumers and stakeholders with practical strategies to identify and avoid falling victim to corporate greenwashing. Additionally, the paper examines the consequences of greenwashing on consumer trust, environmental initiatives, and regulatory frameworks. So,this research paper sheds light on the need for transparency, accountability, and effective regulation to combat greenwashing and foster genuine sustainability efforts by corporations.

Forming a financial model of carbon regulation in the context of the decarbonization objectives for the Russian Federation

The article addresses financial issues of carbon regulation. The research purpose was to identify the features and problems of the financial model development of carbon regulation in the Russian Federation. The research objectives included substantiation of the model concept, systematization of models used in international practice, characterization and assessment of the current stage of the concerning model development in the Russian Federation. According to the research hypothesis, at the early stages of development, the financial model of carbon regulation in the Russian Federation is soft, providing rather a signal effect for business and not having a significant impact on the implementation of national objectives of decarbonization. In the study of international and Russian experience in the implementation of financial models of carbon regulation, methods of content analysis and statistical processing of relevant information were applied. The theoretical results of the research include the analyzed model concept, a refined classification of its main types and a model of its rigidity index. Systematization and evaluation of applied aspects of the problem allow us to conclude that the financial model of carbon regulation in the Russian Federation is super-soft, which has advantages for business, but actualizes such challenges as the effect of the “green paradox”, the risk of importing environmental problems from countries with stricter climate requirements and the green washing problem. It is argued that the development of the financial model of carbon regulation in the Russian Federation requires improving the system of incentive tools, tightening climate reporting standards, formalizing requirements for corporate climate strategies, as well as a differentiated approach adapted to regional business conditions. The research results will be in demand in further academic and expert work in this field. In particular, they can be used in climate strategizing, including in substantiating recommendations for the implementation of the Low-Carbon Development Strategy of the Russian Federation.

Does socio demographic, green washing, and marketing mix factors influence Gen Z purchase intention towards environmentally friendly packaged drinks? Evidence from emerging economy

The study aims to examine the impact of socio demographic, marketing mix and greenwashing variables on the green purchasing intention (GPI) of Generation Z (Gen Z) towards environmentally friendly packaged drinks (EFPD) in India. The research surveyed 380 respondents who are residents of metropolitan cities of India with a minimum of 14 years of structured learning. The data is analysed through a structural equation modelling (SEM)–based multivariate approach by using SPSS 20 and AMOS 23. The results reflect that green price (PR), green advertisement (AT), green packaging (PG), and socio-demographic variables (SDV) of gender, education, and income positively influence the GPI of Gen Z towards EFPD whereas green washing (GW) reduces the GPI. SDV of age doesn't have any significant influence on GPI. The study provides insights into how companies can effectively utilize green marketing strategies to encourage environmentally friendly purchasing behavior and avoid GW practices that could harm their reputation and reduce consumer trust. Implications and future research directions have been made considering the study's findings.

Green preferences sustain greenwashing: challenges in the cultural transition to a sustainable future.

Discussions of the environmental impact that revolve around monetary incentives and other easy-to-measure factors are important, but they neglect culture. Pro-environmental values will be crucial when facing sustainability challenges in the Anthropocene, and demand among green consumers is arguably critical to incentivise sustainable production. However, owing to asymmetric information, consumers might not know whether the premium they pay for green production is well-spent. Reliable monitoring of manufacturers is meant to solve this problem. To see how this might work, we develop and analyse a game theoretic model of a simple buyer-seller exchange with asymmetric information, and our analysis shows that greenwashing can exist exactly because reliable monitoring co-exists with unreliable monitoring. More broadly, promoting pro-environmental values among consumers might even amplify the problem at times because a manufacturer with significant market power can exploit both consumer preferences for sustainability and trustworthy monitoring to gouge prices and in extreme cases green wash in plain sight. We discuss several strategies to address this problem. Promoting accurate beliefs and a large-scale behavioural change based on pro-environmental values might be necessary for a rapid transition to a sustainable future, but recent evidence from the cultural evolution literature highlights many important challenges. This article is part of the theme issue 'Evolution and sustainability: gathering the strands for an Anthropocene synthesis'.