The fraud known as Greenwashing brings damage not only to the company that uses the method, but to all companies that try to establish themselves as sustainable
Special for Estadão – increasingly present in the company debate, ESG (environmental, social and governance) () has started to define how companies incorporate sustainability in management. More than speeches, experts underline that the concept must be connected to the corporate daily life.
“Having an ESG practice does not mean adopting isolated environmental or social initiatives, but to integrate sustainability consistently with governance, management and corporate strategy,” says Daniele Barreto and Silva, Grant Thornton Brazil Expert.
However, while the theme has gained space between consumers and investors, Greenwashing has also grown as follows: when companies present themselves as more sustainable than they really are.
Izabela Lanna Murici, director of Falconi’s sustainability, warns that consumers should be suspicious of specific actions. “For example, when a company launches a” green line “, but maintains most of its production in polluting standards without a coherent transition plan.”
Mauricio Colombari, partner and former leader at PWC Brazil, says that the biggest problem for customers is to associate with companies that do not satisfy what they promise. “This generates frustration and loss of trust. For the market, the washing of green compromises the credibility of the sustainability agenda, reducing the trust of investors and penalizing the companies that really make coherent investments.”
What is and how to identify the washing of the green
Formal relationships
Companies with coherent practices seek external recognition, publish sustainability relationships with recognized standards and metrics and send their information to independent controls. These initiatives strengthen commitment and transparency.
Speech and practice
What is issued by the managers and official channels must be aligned with the reality of the operation. The contradictions are signs of vigilance, as in the case of companies that present themselves as sustainable, but seem associated with slave work, discrimination, environmental crimes or other episodes of negative impact.
Transparency
If the company’s communication highlights only the results and never tackles problems or points to improve, it is a warning sign. The organizations engaged by ESG do not hide their challenges.
Clear objectives
Vago speeches like “reduce our impact” they play well, but they don’t say much. Ideally, the company should present objectives with defined deadlines, objective indicators and results followed transparently.
Value chain
ESG companies engaged extend their practices beyond direct operations, including suppliers and partners in risk assessment and monitoring.
Verifiable information
Be aware of generic slogans such as “eco” or “green”. You prefer the products that explain how the action is performed, bringing objective information, such as “packaging made with 100%recycled plastic” or “FSC SEAL certified wood”.
Types of actions
If advertising highlights only an isolated detail, without showing changes in the production or chain as a whole, it can be a case of overvaluation of the practice. Already a true culture of sustainability tends to appear in constant processes, products and initiatives, not just scores.
Source: Terra
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