For the third consecutive year, RepRisk’s report on greenwashing highlights trends in the number of companies linked to misleading the public about their environmental impact. While the 2024 data shows an overall decrease in greenwashing cases for the first time in six years, high-risk cases of greenwashing surged by over 30%.
# I. Introduction
Over the past years, we have seen a significant increase in interest from clients, partners, researchers, and regulators regarding the identification and measurement of greenwashing risk. Building on our previous year’s analysis, we now revisit the landscape to examine how it has evolved with the latest ESG risk incident data.1
In last year's report, we expanded our focus to include social washing alongside greenwashing. This year, we will concentrate on the regulatory developments in this area, providing insights into how these changes are shaping the greenwashing landscape.2
Greenwashing is the practice of making unsubstantiated, untrue, or misleading claims about the environmental benefits of a company's products and initiatives to attract customers and investors who prioritize sustainability. Through such claims, companies hope to appear more environmentally friendly than they actually are, even when their actions do not align with the environmental standards they promote.
RepRisk captures greenwashing through the intersection of two ESG issue groups: any environmental issue and Misleading communication.3 This approach captures straightforward greenwashing cases such as deceptive labeling and more complex situations like political misalignment.
The relationship between a company’s rhetoric and practice carries substantial reputational risks. As regulations on greenwashing practices become more stringent, and as consumers and investors increasingly pursue legal action for misleading environmental claims, the issue is becoming more pronounced. The rise in lawsuits, investigations and enforcement actions, driven by the tangible environmental impacts of corporate operations, reflects the growing momentum to address greenwashing.
