
What are the IFRS Sustainability Disclosure Standards?
In this article we’ll explore what the IFRS Foundation is, why it created IFRS S1 and S2, and what the standards require from companies.
Greenwashing, also referred to as “green sheen”, is when a company advertises misleading environmental claims, which allow their customers to believe that their product or service is eco-friendly even if it isn’t.
Ultimately, greenwashing is a marketing tactic designed to make a business appear more environmentally responsible than they are in actuality, which is normally done in order to attract environmentally conscious consumers or investors.
The term greenwashing is derived from the word “green” (referring to eoc-friendly practices or being environmentally friendly) with “whitewashing” (referring to covering up wrongdoing). True sustainability initiatives require commitment, transparency, and measurable actions – whereas greenwashing focuses on the company’s image over their honest impact.
Common forms of greenwashing include:
Examples of greenwashing include:
Greenwashing is harmful as it misleads consumers and tricks them into believing they are buying a product that is 100% eco-friendly that causes little to no environmental harm. Furthermore, it undermines trust which can impact businesses long-term and diverts attention from genuine environmental products, companies, or solutions.
You can spot greenwashing by looking for specific, verifiable claims, transparent reporting, and recognized third-party certifications. Remember, vague or overly broad terms without concrete evidence can be red flags for greenwashing.
In some countries, false environmental advertising can violate consumer protection laws, but enforcement can vary depending on the nation – often allowing organizations to proceed with greenwashing.
Companies can avoid greenwashing by always seeking to use tangible, evidence-backed claims, reporting measurable results, and being transparent about both their successes and shortcomings in working towards building a more sustainable business.
