Greenwashing: The Challenge of Accurate Environmental Reporting

Greenwashing has become a significant concern, with a 2022 Google Cloud report indicating that 58% of executives believe their companies exaggerate environmental impacts. Despite efforts to eliminate greenwashing, Ivalua’s research has found that 53% of companies still engage in it unintentionally. A major challenge lies in accurately reporting Scope 3 emissions, about which less than half of organizations feel “very confident” in their reporting accuracy and 61% see it as a “best-guess”. The UK’s consideration of including Scope 3 emissions in its Streamlined Energy and Carbon Reporting (SECR) framework underscores the urgency of precise reporting. There’s also a noticeable gap in comprehensive plans for implementing green initiatives. In particular, it will be key to involve suppliers in sustainability efforts, often a difficult task given supplier resistance and the need for better data. To see real progress and truly effective sustainability, we need to move beyond just estimating impacts and ensure detailed supply chain visibility. This will support genuine environmental progress and combat the potential of greenwashing.

Source: thefintechtimes.com