Greenwashing: Analysing the Discrepancy Between Environmental Rhetoric and Corporate Practices

Abstract

Amid the global spotlight on environmental, social, and governance (ESG) practices, companies are increasingly challenged to align their sustainability initiatives with tangible results and transparent communication. This paper examines the extent to which the marketing language used in corporate reports aligns with the documented substantive environmental initiatives. The study analyses data from twenty-four major food and beverage companies, exploring the extent to which these firms fulfil their plastic pledges and the potential impact on their ESG risk ratings. Findings reveal that while companies are progressing toward their green goals, many fall short of achieving at least 30% of their intended initiatives. With only 20% of companies attaining this benchmark, the paper delves into the fine line between sustainability adaptation and greenwashing. The findings highlight the important alignment of marketing claims with real-world actions, and the adoption of multifaceted approaches to assess corporate sustainability in the pursuit of a more sustainable future for businesses and the environment.