ESG marketing – the perils of greenwashing

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In the post-pandemic era, consumers are more focused than ever on sustainability issues. In response, many companies have sought to place ESG concerns at the centre of their business strategies. Policies and practices informed by the sustainability debate are being rolled out across the corporate world. But businesses must be careful to ensure that there is real substance behind their actions. Those who just pay lip service to ESG or inadvertently make false claims risk being accused of greenwashing, essentially misrepresentation of their sustainability credentials. It is a serious charge that can result in substantial reputational damage and legal action. As such, companies should stress-test their ESG values and record and make sure they stand up to scrutiny. Sustainability policies must have solid foundations and be well-thought-through. Otherwise, what should be a CSR opportunity runs the risk of becoming a PR disaster.