Greenwashing - Navigating the Risks

Setting principles of good practice in governance, disclosure, and due diligence

The rise of ESG initiatives has brought attention to the risks associated with greenwashing, where companies falsely portray themselves as environmentally friendly or socially responsible. Greenwashing undermines the credibility of genuine sustainability efforts, eroding consumer trust and investor confidence. It poses reputational risks, leading to potential backlash and legal implications for organizations found engaging in deceptive practices.

Moreover, greenwashing can result in misallocation of resources, as investors may unknowingly support companies that prioritize marketing over meaningful sustainability actions. To mitigate these risks, regulators, investors, and consumers are increasingly demanding greater transparency and accountability in ESG reporting. Companies must ensure their ESG commitments are genuine, measurable, and aligned with tangible actions to build trust and credibility in the evolving landscape of sustainability. 

At KPMG in India, we believe that integrity and ESG go hand in hand in becoming the watermark across an organisation