February 2023

Ratings divergence complicates anti-greenwashing measures

The risks associated with greenwashing – false/misleading marketing regarding the sustainability attributes of a product or service – are on the rise with signs that net-zero and other commitments made by some members of the financial sector may not be credible. But identification of greenwashing practices remains problematic as the limitations of agencies charged with evaluating ESG practices become apparent.

What's covered?

  • Difficulties with defining greenwashing
  • Inconsistency in ESG ratings
  • Divergences in ESG ratings methodology
  • Greenwashing appears to be overstated