ESG Greenwashing

ESG Greenwashing

Greenwashing is the most mentioned problem in ESG, and it is also an issue involving many stakeholders like consumers, investors, enterprises. 

Although the world has not yet formed a consistent definition of greenwashing, various jurisdictions have realized the harm and actively issued policies.

Types of Greenwashing

Common types of greenwashing include:

Greencrowding: refers to the situation where a company, in an industry with many market participants, believes that its behavior is difficult to detect and takes greenwashing actions.

Greenlighting: refers to the practice of a company carrying out and promoting sustainable actions in a certain direction to attract market attention, but greenwashing in other areas.

Greenshifting: refers to companies blaming the emergence of greenwashing issues as a result of consumers themselves.

Greenlabeling: refers to a statement made by a company that its products and services meet green standards, but in reality, they have not met these standards or are misleading to consumers.

Greenrinsing: refers to the process in which a company continuously changes its sustainable goals before achieving them, in order to reduce market attention to the original goals.

Greenhushing: refers to companies reduce underperforming issues in sustainable disclosure and avoid scrutiny.


SEBI Issues Consultation Paper on ESG Disclosures, Ratings and Investing

The Securities and Exchange Board of India (SEBI) issued a consultation paper to solicit opinions on the ESG disclosures of listed companies, the ESG rating of the securities market and the ESG investment in the asset management industry, so as to promote a more transparent and simplified development