Today, CGIUKI has produced its latest thought leadership paper, titled ‘Tackling greenwashing from a governance perspective’.
A valuable resource for those working in governance in any type of organisation, the paper covers:
- What are the different forms of greenwashing?
- How is greenwashing a governance issue?
- Why is greenwashing problematic?
- What are the existing and upcoming laws and regulations about greenwashing?
- What are the reputational, legal and financial risks for organisations which are accused of greenwashing?
- How should governance professionals manage greenwashing?
As organisations face increasing pressure from regulators, investors and the public to tackle climate change, the temptation to distort information on sustainability efforts may grow. However, greenwashing is a risky practice. Not only is it damaging to genuine climate action, it also carries specific reputational, legal and financial risks for organisations which engage in it. Public and private investors, as well as funders within the not-for-profit sector, increasingly consider an organisation’s sustainability metrics and activity when making their investment decisions. And as the regulatory environment undergoes further, rapid evolution – and becomes more litigious – the stakes become even higher.
This paper frames greenwashing as a governance issue and provides the necessary framework for governance professionals to build ‘greenwash-proof’ organisations. Research has demonstrated that the governance individuals, procedures and structures within a firm are more important than country-level factors for avoiding greenwashing. Those working in governance have a pivotal role to play in steering their organisations towards greater accuracy and transparency in their environmental claims and, ultimately, building trust in their organisation’s ability to tackle climate change.
You can read the full report here.
