Greenwashing is increasingly recognised by consumers as an insincere marketing gimmick.
A SEC Newgate report, “Global ESG monitor: what the community expects from corporates on ESG,” says consumers are beginning to openly scrutinise greenwashing initiatives and expect more when it comes to ESG.
The report said around half of individuals globally have heard of the term greenwashing, and nearly two thirds think it’s a real problem.
Consumers are increasingly supportive of ESG initiatives, with 77% of the community wanting corporates to tackle ESG issues and two in three people (67%) rating their level of interest in ESG as high.
Traditionally, the community expectation was for corporates to make “positive financial contributions” to the economy in the form of providing jobs and paying taxes.
However, these contributions cannot come at the expense of environmental, social, and ethical obligations, which are now “just a part of doing business,” says the report.
The report adds that to bridge the gap between the demand for ESG practices and correct execution, a “thorough leadership” approach is necessary.
Companies viewed as doing a “good job” have several defining actions, such as considering environmental impacts early on, having multiple points of evidence, and genuinely trying.
The “worst companies” are causing harm to the environment, price gouging, promoting overconsumption, and projecting a slow move towards sustainability.
The report was published by SEC Newgate, a global public relations firm, and was based on a sample of 12,080 people across 12 countries and territories.