УТИЦАЈ GREENWASHING-A НА КРЕДИБИЛИТЕТ ESG ИЗВЕШТАВАЊА
THE IMPACT OF GREENWASHING ON THE CREDIBILITY OF ESG REPORTING

Author(s): Dejan Jovanović
Subject(s): Energy and Environmental Studies, Governance, Environmental and Energy policy, Accounting - Business Administration
Published by: Savez računovođa i revizora Republike Srpske
Keywords: environment; society; corporate governance; ESG reporting; greenwashing; audit; verification; assurance;
Summary/Abstract: Participants in the capital market, regulators, and other stakeholders worldwide are increasingly calling for transparent measurement and disclosure of information regarding the environmental, social, and governance (ESG) aspects of company operations. As a result, the number of companies reporting on environmental, social, and governance matters (ESG reporting) is growing. However, concerns are also rising that the absence of requirements for standardized, timely, and comparable ESG metrics allows companies to make exaggerated claims and conceal their true ESG performance, known as greenwashing. Greenwashing is the deliberate and selective disclosure of information by a company to create a positive image in the eyes of stakeholders, deliberately revealing information that may be beneficial for the company but harmful to society. Due to the increase in the number of ESG reports and the absence of a global governing body to ensure the accuracy of ESG information, an increasing number of researchers are studying the impact and consequences of inaccurate ESG reporting. Based on this, the paper aims to address whether and to what extent greenwashing is present in ESG reporting and how to prevent companies from using greenwashing in their reporting. The main conclusion of the research is that standardization is necessary in the disclosure and verification of ESG information to prevent fragmentation, ensure greater comparability, reliability, and transparency, and reduce the complexity of ESG reporting. All of this would result in a reduction in the risk of greenwashing

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