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.