Search Results (33)

The increasing pressure for environmental, social, and governance (ESG) accountability in publicly funded institutions has raised concerns about the authenticity and efficiency of ESG implementation. This study investigates the relationship between public ESG funding, disclosure quality, and organizational efficiency across Greek public and financial entities. Using a mixed-methods approach—data envelopment analysis (DEA), qualitative ESG content scoring, and bibliometric mapping—we reveal that symbolic compliance remains prevalent, often decoupled from actual sustainability outcomes. Our DEA findings show that technical efficiency is strongly associated with reporting clarity, the use of verifiable metrics, and governance integration, rather than the mere volume of funding. The qualitative analysis further confirms that many disclosures reflect reputational signaling rather than impact-oriented transparency. Bibliometric results highlight a systemic underrepresentation of the public sector in ESG scholarship, particularly in Southern Europe, underscoring the need for regionally grounded empirical studies. This study provides practical implications for improving ESG accountability in publicly funded institutions and contributes a novel approach that integrates efficiency, content, and bibliometric analysis in the ESG context. Full article

This study examines the degree of alignment between the actual environmental performance and the ESG disclosures of 365 listed financial institutions in Europe for the fiscal year 2024. Although ESG reporting has become a standard practice in the financial sector, there are still concerns that the quality of the disclosure may not accurately reflect substantive environmental action, which increases the risk of greenwashing. This study addresses this issue by incorporating both ESG disclosure indicators and green accounting metrics into a multi-criteria decision-making framework. This framework is supported by entropy-based weighting to assure objectivity in criterion importance, as outlined in the PROMETHEE II method. The Greenwashing Risk Index (GWI) is a groundbreaking innovation that quantifies the discrepancy between an institution’s classification based on ESG transparency and its performance in green accounting indicators, including environmental penalties, provisions, and resource usage. The results indicate that there is a substantial degree of variation in the performance of ESGs among institutions, with a significant portion of them exhibiting high disclosure scores but insufficient environmental substance. These discrepancies indicate that reputational sustainability may not be operationally sustained. The results have significant implications for regulatory supervision, sustainable finance policy, and ESG rating methodologies. The framework that has been proposed provides a replicable, evidence-based tool for identifying institutions that are at risk of greenwashing and facilitates the implementation of more accountable ESG evaluation practices in the financial sector. Full article

This paper addresses the definitional ambiguity surrounding the term “green fintech” and its distinction from related concepts such as green finance and sustainable finance. We argue that the lack of clarity impedes accountability and facilitates greenwashing. To resolve this, we develop a conceptual framework grounded in a six-step “litmus test” that specifies the necessary conditions for an initiative to qualify as green fintech. These include demonstrable environmental objectives, the application of innovative financial technologies, and regulatory alignment. The test functions as a diagnostic tool, enhancing verifiability and reducing the risk of misrepresentation. We illustrate its practical use and integrate the Dynamic Integrated Model of Climate and the Economy (DICE) to support the analysis. Green fintech is defined as the implementation of green climate objectives through the medium of financial technology. This contribution provides both definitional precision and a means to assess the credibility of green fintech initiatives, offering clarity in an increasingly complex and contested area of sustainable finance. Full article

Green building materials play a vital role in mitigating the significant carbon emissions produced by the construction industry. However, the widespread presence of greenwashing, where firms falsely portray their products or practices as environmentally friendly, presents a critical obstacle to the adoption of genuinely sustainable materials. The risk of collusion between building material enterprises and certification institutions further exacerbates this challenge by undermining trust in green certification processes. To investigate these issues, this study develops an evolutionary game model that captures the strategic interactions between building material enterprises and certification institutions. The model incorporates the behavioral assumptions of prospect theory, specifically bounded rationality, loss aversion, and diminishing sensitivity, to reflect the real-world decision-making behavior of the involved actors. The findings reveal three evolutionarily stable strategies (ESS) within the system. First, a higher initial willingness by both enterprises and certifiers to engage in ethical practices increases the likelihood of convergence to an optimal and stable outcome. Second, a greater degree of diminishing sensitivity in the value function promotes the adoption of authentic green behavior by enterprises. In contrast, a lower degree of diminishing sensitivity encourages certification institutions to refrain from collusion. Third, although the loss aversion coefficient does not directly affect strategy selection, higher levels of loss aversion lead to stronger preferences for green behavior among enterprises and noncollusive behavior among certifiers. This research makes a novel theoretical contribution by introducing prospect theory into the analysis of greenwashing behavior in the building materials sector. It also provides actionable insights for improving regulatory frameworks and certification standards to mitigate greenwashing and enhance institutional accountability. Full article

With the increase in greenwashing, corporate greenwashing governance has become a crucial component of urban environmental management. Industrial clusters are a key form of urban economic organization, yet the mechanisms through which they affect corporate greenwashing remain unclear. This study examines how different types of industrial agglomeration influence corporate greenwashing using a sample of Chinese A-share listed companies. The key findings include the following: (1) Specialized agglomeration inhibits corporate greenwashing through a “supervision” effect generated by intra-industry competition, while diversified agglomeration exacerbates greenwashing via a “collusion” effect arising from inter-industry cooperation. (2) The inhibitory role of specialized agglomeration is amplified under conditions of low public and strong government environmental concern, while the promotional effect of diversified agglomeration becomes more pronounced in contexts of high public and weak government environmental concern. Government environmental concern can be categorized into “general” and “specific” types, with the former being more effective in governing corporate greenwashing. (3) Specialized agglomeration demonstrates superior efficacy in curbing greenwashing among firms with green innovations related to energy-saving, alternative energy production, waste management, and transportation, while diversified agglomeration intensifies greenwashing tendencies in firms without green innovations. (4) Collusive greenwashing under diversified agglomeration yields short-term firm value gains but incurs hidden costs, including elevated operational risks and declining profit margins. This research provides critical insights for promoting corporate green transition and fostering zero-carbon industrial clusters. Full article

This research aims to investigate, using the C-A-B theory, the buying decision-making processes of Gen Z consumers in the United States when exposed to fast fashion brand advertising messages including greenwashing elements. Responses of 345 valid participants from the Amazon Mturk platform were analyzed through Mplus 8.11 and SPSS 29. Two-step, structural equation modeling was implemented to test the hypothesis. Additionally, 5000 bootstrapping iterations were used to examine the indirect effects. Study findings indicated that Gen Z consumers responded positively and negatively to fast fashion brands’ product promotional messages. Despite feeling skeptical and betrayed over the greenwashing assertion, they intend to purchase the goods. A contributing factor to this unforeseen purchasing intention may be their indifference towards environmental concerns. Moreover, when greenwashing assertions are infused with product advantages through strategic ingenuity and aligned with the specific demands of certain generations, the perception of positive emotional reaction supersedes the negative, hence facilitating the purchase of the green product. Furthermore, there is evidence of optimism biases, a cognitive bias where they exaggerate their capacity to identify instances of greenwashing, prioritize more on their certain needs, and underestimate the associated environmental risk for others. This clarifies the paradoxical buying patterns of Gen Z consumers. Although Gen Z is the youngest demographic, their tastes for fast fashion apparel may alter as they develop and their lifestyles adapt, influenced by both positive and negative emotional reactions to fast fashion brands. Consequently, the fast fashion business must retain this customer by utilizing sustainability messaging instead of misleading greenwashing assertions in the future. Full article

As global climate change intensifies and carbon emission policies become increasingly stringent, carbon risk has emerged as a crucial factor influencing corporate operations and financial markets. Based on data from A-share listed companies in China from 2009 to 2022, this paper empirically examines the pricing mechanism of carbon risk in the Chinese capital market and explores how different corporate signaling behaviors affect the carbon risk premium. The findings reveal the following: (1) Carbon risk exhibits a significant positive premium (annualized at about 1.33% per standard deviation), which remains robust over longer time windows and after replacing the measurement variables. (2) Heterogeneity analysis shows that the carbon risk premium is not significant in high-energy-consuming industries or before the signing of the Paris Agreement, possibly due to changes in investor expectations and increased green awareness. Additionally, a significant difference in the carbon risk premium exists between brown and green stocks, reflecting a “labeling effect” of green attributes. (3) Issuing green bonds, as an active corporate signaling behavior, effectively mitigates the carbon risk premium, indicating that market investors highly recognize and favor firms that actively convey green signals. (4) A “greenwashing” indicator constructed from textual analysis of environmental information disclosure suggests that greenwashing leads to a mispricing of the carbon risk premium. Companies that issue false green signals—publicly committing to environmental protection but failing to implement corresponding emission reduction measures—may mislead investors and create adverse selection problems. Finally, this paper provides recommendations for corporate carbon risk management and policy formulation, offering insights for both research and practice in the field. Full article

As global sustainability goals gain momentum, seaports are playing a pivotal role in driving environmentally and socially responsible practices. In light of the International Maritime Organization’s emission reduction targets, transparent and effective Environmental and Social (E&S) reporting has become increasingly vital. This study critically examines current E&S reporting practices in the port industry through an analysis of recent disclosures from major European and global ports, supported by a review of academic and industry literature. The research explores how sustainability reports address key themes such as CO₂ emissions, energy efficiency, health and safety, operational performance, and biodiversity. While the presence of numerous indicators reflects a commitment to comprehensive sustainability, the proliferation of metrics poses challenges for clarity, comparability, and stakeholder engagement. The abundance of data risks diluting focus, complicating benchmarking, and may even contribute to greenwashing. Without standardization and strategic alignment, reporting can become counterproductive. This study advocates for a harmonized set of performance indicators that remain flexible enough to reflect port-specific strategies, yet are consistent with global benchmarks. Achieving this balance will require collaboration among researchers, industry leaders, and policymakers to develop transparent, adaptive E&S reporting frameworks that support meaningful progress in ports’ sustainability. Full article

Green banking has become a concept of interest, particularly with the focus on the role played by banks in pursuing Sustainable Development Goal 13 on climate action. This study is distinguished from previous ones in that it aimed at investigating the multi-regional view on green banking practices/activities around the world with a special emphasis on the opportunities and challenges that various banks encounter in different geographical areas. A systematic review approach was adopted based on the Web of Science and Scopus databases, in which 159 articles were retrieved and 62 articles synthesized through a thematic analysis. The research process was demonstrated through a Prisma 2020 flowchart. Key multiregional green banking activities identified include digital banking, green loan or sukuk products for Islam-dominated economies, green services and investments, and financing of green infrastructure. In essence, the implementation of green banking is either directly through active green lending and greening their operations or indirectly through enhancing conditions. The key challenges identified include regulatory handles, social economic and culture hinderances, transition risk and the high cost of compliance, greenwashing concerns, and weak investor confidence. The most prevalent opportunities included green banking as a strategic competitive advantage, emerging market niche, and as a strategy for long-term climate risk management. Full article

Circular economy marketing (CEM) represents an innovative approach to aligning business strategies with sustainability objectives. This paper explores the role of CEM as a driver of green marketing innovation, emphasising strategies that minimise environmental impact on business competitiveness while enhancing consumer engagement. Using a systematic literature review based on the PRISMA methodology, we identified 39 high-impact studies across multiple industries, categorising findings into key themes, theoretical frameworks, and marketing strategies. The analysis highlights emerging trends, including the shift toward product-service systems (PSSs), behavioural nudging, transparent sustainability branding, and integration of digital technologies such as AI and blockchain to enhance traceability and consumer trust. Findings reveal that while circular economy marketing presents opportunities for businesses to differentiate themselves and build long-term sustainability strategies, significant challenges remain, including scalability issues, consumer scepticism, and risks of greenwashing. Moreover, gaps in standardising impact measurement and industry-specific adaptation hinder wider implementation. Business model innovation, policy support, and collaborative efforts are crucial in overcoming these barriers. This study provides insights for businesses, policymakers, and researchers, highlighting how CEM fosters green innovation and competitiveness. Future research should compare the effectiveness of various strategies to accelerate the transition toward sustainable marketing practices through regulation and interdisciplinary collaboration. Full article

Amid escalating ecological concerns and regulatory pressures, firms are adopting environmental sustainability commitments to enhance competitiveness and fulfill social responsibilities. However, the internal mechanisms linking these commitments to environmental performance remain insufficiently explored. This study investigates how corporate environmental sustainability commitments improve environmental performance by integrating the Planned Behavior Theory and Organizational Change Theory. Using structural equation modeling with 324 firm-level responses, we identify a chain mediation pathway. Results indicate that environmental sustainability commitment positively influences corporate environmental performance through the chain-mediating effects of green readiness and green opportunity identification and exploitation. By extending the Technology–Organization–Environment (TOE) framework, we delineate three dimensions of green readiness, showing that organization readiness exhibits the strongest mediating role. This study advances theoretical understanding by mapping the pathway from sustainability intentions to performance through internal capabilities and actions. Practically, it helps firms systematically align environmental and economic goals while avoiding greenwashing risks. Full article

One of the most significant recent developments in the debt financing sector pertains to new products and standards applicable to sustainability-related issues. Therefore, research on this has increased substantially. One of the most recent such developments is that of sustainability-linked bonds (SLBs). In 2023, global sustainable bond issuance experienced an increase of three percent, nearly reaching USD 1 trillion with significant shifts observed in categories, including green-, social-, sustainability-, and sustainability-linked bonds (GSSSBs). This paper presents one of the most extensive literature reviews on SLBs research, examining trends, research evolution, thematic landscape, and underexplored topics by employing bibliometric and content analysis approaches. It identifies future research avenues and trends, including supporting issuers in transitioning towards net-zero emissions or broader objectives, such as implementing sustainability targets to fight climate change, the premium associated with bond pricing, the potential for greenwashing, and the blockchain technology for issuance and target’s monitoring transparency. In addition, this paper discusses the new trend of thematic bonds, such as those addressing gender characteristics, as innovative strategies to promote societal equity. The systematic literature review also explores the significance of SLBs as public instruments, like sovereign bonds or private instruments, while identifying research areas, including linking SLBs with the evolution of management theory. Full article

Greenwashing undermines the trustworthiness and integrity of environmental, social, and governance (ESG) reporting. It undermines disclosure quality, confuses decision making, destabilizes financial markets, and reduces the probability that people will trust the supplied information. This research utilizes a comprehensive literature review and bibliometric analysis to investigate the scholarly dialogue around ESG disclosure and strategies to counteract corporate “greenwashing”. This study’s objectives were achieved by bibliometric analysis, using the statistical programming tools R Studio R 3.6.0+, Biblioshiny 4.2.0, and VOSviewer 1.6.20. We acquired bibliometric data from the Scopus database for the period 2012–2024. We established the optimal sample size via the PRISMA methodology, including both inclusion and exclusion criteria. Greenwashing is a multifaceted issue that manifests in many forms, shapes, and intensities, as seen by the data. This obstructs the advancement of apparatus for prevention, quantification, and detection. Moreover, the results indicate that sustainable finance is adversely affected by greenwashing, particularly for green loans and green bonds. Moreover, the findings indicate that corporate greenwashing is a distinct kind of greenwashing. Full article

The rising prevalence of greenwashing by firms has emerged as a major concern for regulatory authorities over the past decade. This paper examines the impact of regulation on firms’ strategic decisions regarding greenwashing and environmental quality in an oligopolistic market. We model two firms that compete on environmental quality and greenwashing levels, operating under the oversight of a regulatory authority. The authority’s policy instruments include a detection mechanism and fines imposed on firms engaging in greenwashing. Using a differential game-theoretical framework, we examine the effectiveness of regulatory interventions like detection and penalties in reducing greenwashing behavior and enhancing environmental quality. Additionally, we discuss the post-detection trajectories of both firms, providing insights into the effects on consumer perceptions and market competition. We find that while regulation can reduce greenwashing as expected, it may also reduce firms’ environmental quality efforts. Indeed, when penalties are sufficiently high, the marginal returns on investment in greenwashing exceed those from actual green quality improvements. Full article

The effects of greenwashing as a corporate strategy on firm risk are not well defined. I construct a greenwashing measure for 3973 companies from 70 countries from 2012 to 2022. Using Dynamic Panel Modeling, I find results suggesting that greenwashing is a complex phenomenon with both positive and negative consequences. While it can improve a firm’s public image and potentially enhance its financial performance, it may also lead to increased risk and misallocation of resources. Greenwashing firms have a lower weighted average cost of capital due to a higher debt-to-capital ratio. They are larger, have higher institutional ownership, and lower dividend yields. On the other hand, greenwashing firms have more ESG-related controversies that can hurt firm revenues and market value, they have higher unsystematic risk, and they have lower dividend yields and return on equity. I also find evidence that there is a feedback relationship between ESG ratings and greenwashing. There is no evidence that government mandates on ESG reporting inhibit greenwashing. The implication is that ESG scoring that emphasizes reporting ESG activities while informing investors also encourages greenwashing. Full article