Examining greenwashing and SDG-washing: an analysis of corporate engagement with the SDGs
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 12 December 2023
Issue publication date: 2 February 2024
Abstract
Purpose
The purpose of this study is to examine the existence of greenwashing and sustainable development goal (SDG)-washing processes by comparing ex ante (SDG Compass) and ex post (SDG Compliance) indicators and investigating whether the limitations associated with these indicators encourage companies to engage in washing processes.
Design/methodology/approach
The authors use a sample of 1,154 companies included in the S&P Sustainability Yearbook (formerly the RobecoSAM Yearbook). The authors test for the presence of greenwashing by comparing ex ante and ex post indicators for each SDG, whereas to test for SDG-washing, the authors compare the two ex ante and ex post approaches considering the full set of SDGs.
Findings
The results show that there is no consistency between the two types of indicators to measure the level of SDG implementation in organisations. This lack of consistency may facilitate both greenwashing and SDG-washing processes, which is due to the design and limitations of these measurement tools.
Practical implications
Companies may choose those indicators that paint their commitment to the SDGs in the best light, but they may also select indicators based on the SDGs they want to report on. These two options would combine greenwashing and SDG-washing.
Social implications
The shift towards improved standards and regulations for measuring SDG achievement is the result of several social factors such as investor scrutiny, regulatory reform, consumer awareness and increased corporate accountability.
Originality/value
Few previous studies have analysed in detail the interaction between greenwashing and SDG-washing. They focus on the use of ex ante or ex post indicators separately, with samples composed of local companies, and without considering the whole set of SDGs.
Keywords
Acknowledgements
The authors gratefully acknowledge financial support from grant PID2019-104304GB-I00 and PID2019-107822RB-I00 funded by MCIN/AEI/ 10.13039/501100011033 and grant TED2021-131216B-I00 funded by MCIN/AEI/10.13039/501100011033 and European Union “NextGenerationEU”/PRTR.
The study was funded by Ministerio de Ciencia e Innovación; PID2019-104304GB-I00/PID2019-107822RB-I00/TED2.
Citation
del Río, C., González-Álvarez, K. and López-Arceiz, F.J. (2024), "Examining greenwashing and SDG-washing: an analysis of corporate engagement with the SDGs", Sustainability Accounting, Management and Policy Journal, Vol. 15 No. 2, pp. 412-456. https://doi.org/10.1108/SAMPJ-02-2023-0080
Publisher
:Emerald Publishing Limited
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