The Harvard Business Review (HBR) has recently shed light on the escalating issue of greenwashing within the realm of Environmental, Social, and Governance (ESG) practices, emphasizing its detrimental impact on corporate credibility and investor trust. Greenwashing, a term coined by environmentalist Jay Westerveld in 1986, refers to the deceptive practice where companies falsely portray their products or policies as environmentally friendly without substantive actions to back such claims. This tactic not only misleads consumers but also poses significant risks to a company’s reputation and financial standing. ​ 

Historically, several corporations have engaged in greenwashing to divert attention from their environmental shortcomings. For instance, in the 1950s, major beverage companies, including Coca-Cola and PepsiCo, established the “Keep America Beautiful” campaign. While ostensibly promoting environmental stewardship, this initiative aimed to shift the responsibility of plastic waste pollution onto consumers, thereby deflecting scrutiny from the companies’ increasing reliance on disposable packaging. Similarly, in the early 2000s, BP popularized the term “carbon footprint,” subtly redirecting the onus of climate change mitigation onto individuals, despite the company’s substantial greenhouse gas emissions. ​  
In response to growing concerns over greenwashing, regulatory bodies have intensified efforts to promote transparency in ESG reporting. The European Union’s implementation of the Sustainable Finance Disclosure Regulation (SFDR) in March 2021 exemplifies such measures, aiming to enhance the reliability of sustainability claims and prevent misleading disclosures. Nonetheless, the proliferation of diverse and sometimes inconsistent ESG standards continues to pose challenges. This lack of uniformity not only hampers investors’ ability to make informed decisions but also enables companies to exploit ambiguities for greenwashing purposes. As stakeholders increasingly demand genuine commitment to sustainability, companies are compelled to align their operations with authentic ESG principles to maintain trust and ensure long-term success.

References
https://pt.wikipedia.org/wiki/Greenwashing