A new study finds that almost one-third of companies that were reported for engaging in greenwashing last year continued to do so in 2024. The business sustainability report identified greenwashing by examining the overlap between two ESG issue groups: misleading communication and environmental concerns.
The report’s findings
Conducted by ESG data firm RepRisk, they identified 1,841 incidents of misleading communication worldwide in the past year, with 1,038 cases involving environmental concerns. Out of the 3,868 companies tied to misleading communication, 2,213 were associated with environmental misrepresentation.Â
This could be a company using vague terms that could mislead consumers, failing to mention any negative impacts, or overstating the positive impact of its products, services, or operations, for example. Private companies dominated the list, making up 70 percent of greenwashing cases.Â
More worryingly, this analysis found that 30 percent of last year’s offenders continued to mislead their customers with environmental claims in 2024. According to the report, the overall severity of greenwashing cases has increased globally by 30 percent year-over-year, with high-severity cases involving systematic and intentional ESG violations that lead to corporate penalties or environmental harm.
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Greenwashing incidents by region and sector
The report shared that Europe and North America had the highest levels of greenwashing incidents, followed by Asia, Latin America, and the Caribbean. In saying that, it also spotlighted that Europe witnessed a substantial reduction in greenwashing cases in 2024. Countries like the Netherlands, the UK, Germany, China, and Spain reported annual declines in greenwashing cases.Â
This was primarily driven by regulatory pressure. By contrast, the US saw a reversal of its prior trend, with an increase in greenwashing instances of over 6% year over year. This follows a 10 percent decline in the previous year. High-severity incidents in the US rose by 114 percent compared to 2023.Â
However, low and medium-severity cases decreased by 34 percent and more than 15 percent, respectively. The repeat offender rate in the US is 42 percent, which is considerably higher than the global average of 30 percent. By sector, the oil and gas industry accounted for the most greenwashing cases, followed by the food and beverage industry, and then banking and financial services.Â
With this in mind, it is important to note that the banking and financial sector witnessed the largest year-over-year decline at almost 27 percent, with retail, personal, and household goods simultaneously decreasing by over 25 percent. The food and beverage sector saw the smallest reduction, at just 3 percent.Â
Final thoughts
The findings from RepRisk’s study highlight the persistent and evolving nature of greenwashing, with some industries and regions making progress while others lag behind. Despite the rise in high-severity cases and the concerning rate of repeat offenders, the decline in certain regions and sectors demonstrates the impact that regulatory pressure and public scrutiny can have on corporate behaviour.Â
For businesses, the takeaway is clear: genuine sustainability efforts and transparent communication are critical for building trust and avoiding reputational damage. Understand green marketing and discover how to create a transparent communication plan with our online Certificate in Green Marketing and Communication course. Enrol today to master the art of impactful, credible sustainability messaging and steer clear of the greenwashing pitfalls.Â
