As Environmental, Social and Governance (ESG) become more popular in Australia, so does the awareness of greenwashing and the need for transparent ESG reporting and assurance.
Greenwashing is when a company presents misleading information about their environmental impact or action. It is more extensive and subtle than reporting false statistics and can include:
The Australian Competition and Consumer Commission (ACCC) is cracking down on Australian businesses that are greenwashing, targeting companies that use misleading messaging or claims about their environmental action and impact.
As there is no singular legal definition for words such as “sustainable” or “environmentally friendly” these terms are often used as nothing more than a marketing tool to capture environmentally conscious consumers or to strengthen a brand under false pretenses.
It’s important to note that greenwashing is not always done intentionally. Many businesses genuinely care about the sustainability of their business but still may communicate their commitments and outcomes in a way that may be considered greenwashing.
If you’re seeking assistance on your professional pathway to sustainability, please contact one of our ESG specialists today.