What is Greenwashing?

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Overview:

International Sustainability Standards Board (ISSB) recently released a new set of G20-backed global rules aimed at helping regulators crack down on greenwashing.

About Greenwashing:

 

What is it?

  • It is the process of conveying a false impression or misleading information about how a company’s products are environmentally sound.
  • Greenwashing involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.
  • In addition, greenwashing may occur when a company attempts to emphasize sustainable aspects of a product to overshadow the company’s involvement in environmentally damaging practices
  • Companies can also greenwash initiatives with vague claims that don't provide real data or scientific validation for the claims.
  • For example, a car vendor claims that a vehicle is eco-friendly because it is more fuel-efficient, while failing to mention or consider the larger industrial impact of vehicle manufacturing on the environment.

What is the International Sustainability Standards Board (ISSB)?

  • It was created in 2021-22 to develop a worldwide standard for sustainability reporting.
  • It is part of the independent International Financial Reporting Standards (IFRS) foundation, which also writes accounting rules used in more than 100 countries.
  • The mission of the ISSB is to develop—in the public interest—a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs.

 


Q1What is the International Sustainability Standards Board (ISSB)?

It was created in 2021-22 to develop a worldwide standard for sustainability reporting. It is part of the independent International Financial Reporting Standards (IFRS) foundation, which also writes accounting rules used in more than 100 countries.

 

Source: New rules aim to clamp down on corporate greenwashing