Is your business Greenwashing? What is greenwashing? Greenwashing is a deceptive marketing tactic businesses use that misrepresents or exaggerates their environmental, ethical, or sustainability practices. It is characterised by making claims without providing evidence or verification to support those claims. For instance, if a company claims to be carbon neutral but hasn’t taken any credible steps to offset or reduce its carbon emissions, it could be accused of greenwashing.
In the past 12 months, ASIC has taken action with 35 regulatory interventions to combat greenwashing. The Deputy Chair of ASIC recently emphasised that the most effective way to counter misleading sustainability messages is for businesses to report their climate action in alignment with the International Sustainability Standards Board (ISSB). This highlights the growing importance of transparency and accountability in sustainability reporting.
So, what does this mean for your business? Regardless of where you stand on your journey toward achieving net-zero emissions, it’s crucial to be able to acknowledge and promote the steps you’re taking to become more environmentally friendly. However, these must be based on transparency, evidence, and verifiability. While accountants are trusted advisors in financial reporting, they can also play a crucial role in non-financial reporting.
Management Accountants like Viridity can help businesses prepare the evidence they need to celebrate their sustainability journey genuinely. This involves ensuring that your sustainability claims are supported by credible data and actions, thus avoiding the pitfalls of greenwashing. Please ask us how we can assist you in accurately reporting and promoting your sustainability efforts. By doing so, you’ll not only earn the trust of your customers and stakeholders but also contribute to a more sustainable future.