Greenwashing Cases Decline
A significant development in the sustainability landscape has been noted, as RepRisk's latest report reveals a 12 percent decline in global greenwashing cases between June 2023 and June 2024 across all sectors. This marks the first drop in greenwashing incidents in the last six years, signalling a shift towards greater caution by companies when communicating their environmental claims. Alexandra Mihailescu Cichon, RepRisk's Head of Commercial, stated that companies are becoming more mindful of how they convey not just their environmental efforts but also their broader ESG initiatives.
However, despite the overall decrease, the report highlights new challenges. Of the 1,841 misleading communication incidents documented, 56 percent were classified as greenwashing. Private companies were responsible for 70 percent of these greenwashing cases, while public companies accounted for the remaining 30 percent. Philipp Aeby, CEO of RepRisk, emphasized that stakeholders are now more aware of the reputational risks posed by greenwashing than ever before.
The Rising Severity of Greenwashing Cases
While the overall decline is encouraging, the report also found an increase in the severity of greenwashing cases. Thirty percent of companies involved in greenwashing incidents between 2022 and 2023 were repeat offenders in 2024. In the United States, 42 percent of companies implicated in greenwashing in 2023 were once again cited in the 2024 report, indicating a pattern of systemic violations.
The oil and gas sector continues to be the industry most frequently associated with greenwashing claims, representing 22 per cent of the total cases. Although this sector has been a consistent offender since 2019, 2024 saw increased scrutiny on food and beverage companies concerning their sustainability claims. Additionally, the banking and financial services sector, which had experienced a 70 per cent surge in greenwashing cases in previous years, saw a 20 per cent decline in 2024.
Peterson Indonesia: Commitment to Transparency and Anti-Greenwashing
As a sustainability consultancy, Peterson Projects and Solutions Indonesia strongly opposes any form of greenwashing in sustainability reporting. We believe transparency is paramount to sustainability efforts. When producing sustainability reports, companies must ensure their claims genuinely reflect the actions they are taking, rather than merely engaging in reputational window-dressing.
We also acknowledge the risk posed by "greenhushing," a practice where companies withhold or conceal information about their environmental efforts to avoid scrutiny. While increased regulation and oversight may help curb greenwashing, it is crucial that companies remain forthcoming in reporting their sustainability actions comprehensively.
With the growing awareness among stakeholders and the public about the risks of greenwashing, we at Peterson Projects and Solutions Indonesia will continue to support companies in ensuring that their sustainability reports reflect genuine, transparent, and honest actions.
Interested in our sustainability services? Contact us by clicking that link or email us to marketing.indonesia@onepeterson.com
Comentários