Unveiling the Truth: Climate-Related Disclosures and Greenwashing Exposed

Alfred Tang

Hatched by Alfred Tang

Aug 19, 2023

3 min read


Unveiling the Truth: Climate-Related Disclosures and Greenwashing Exposed


In the face of growing concerns about climate change and environmental sustainability, companies and organizations have been under increasing pressure to demonstrate their commitment to reducing greenhouse gas emissions and adopting eco-friendly practices. However, amidst this wave of green initiatives, a dark secret lurks – greenwashing. This deceptive marketing tactic allows some brands to present themselves as environmentally friendly while engaging in practices that are far from sustainable. In this article, we will delve into the realm of climate-related disclosures and expose the truth behind greenwashing.

Climate-Related Disclosures: Shedding Light on Emissions

The issuance of the IFRS S2 Climate-related Disclosures has brought about a standardized framework for companies to disclose their greenhouse gas emissions. One key aspect of these disclosures is the absolute gross greenhouse gas emissions, which provide a comprehensive overview of the emissions produced by an entity. These emissions are often categorized based on the Greenhouse Gas Protocol, which includes CO2 equivalents. This industry-based metric allows for a comparison of emissions across different sectors, enabling stakeholders to gauge a company's environmental impact.

Furthermore, location-based Scope 2 emissions, as outlined in paragraph B11 of IFRS S1, require entities to reassess climate-related risks and opportunities throughout their value chain in the event of significant changes or circumstances. This holistic approach ensures that companies consider the broader implications of their actions and strive for continuous improvement in reducing emissions.

Unveiling Greenwashing: The Deceptive Mask of Eco-Friendly Brands

While climate-related disclosures provide a necessary framework for transparency, they also unearth the prevalence of greenwashing. Many brands, in an attempt to capitalize on the growing demand for eco-friendly products and services, mislead consumers by exaggerating their environmental practices or benefits. These misleading tactics can take various forms, from cheesy commercials featuring idyllic nature scenes to claims of caring for health and the environment.

However, it is crucial for consumers to exercise caution and skepticism when encountering such marketing campaigns. The affiliations of these brands with notoriously unsustainable companies raise red flags and call for a closer examination of their claims. Greenwashing not only deceives consumers but also undermines genuine efforts towards environmental sustainability.

Connecting the Dots: Climate Disclosures and Greenwashing

The connection between climate-related disclosures and greenwashing lies in the quest for accountability and transparency. While climate-related disclosures aim to provide an accurate representation of a company's environmental impact, greenwashing attempts to manipulate this information to create a false perception of sustainability.

By understanding the intricacies of climate-related disclosures and recognizing the signs of greenwashing, stakeholders can navigate the sustainability landscape more effectively. It is crucial to prioritize authentic commitments to environmental responsibility and support brands that genuinely embrace sustainable practices.

Actionable Advice: Empowering Consumers and Holding Brands Accountable

  • 1. Educate Yourself: Take the time to familiarize yourself with climate-related disclosures, the Greenhouse Gas Protocol, and other sustainability frameworks. By understanding these concepts, you can make more informed decisions and identify potential greenwashing attempts.
  • 2. Research Brands: Before supporting a brand, conduct thorough research into its environmental practices and affiliations. Look for transparency in reporting, certifications from reputable sustainability organizations, and genuine efforts towards reducing greenhouse gas emissions.
  • 3. Demand Accountability: As consumers, we have the power to hold brands accountable for their claims. Engage with companies through social media, emails, or public forums to voice your concerns and expectations. Encourage them to prioritize transparency and authentic sustainability efforts.


Climate-related disclosures provide a valuable tool for understanding and addressing the environmental impact of companies. However, the prevalence of greenwashing poses a significant challenge to the authenticity of sustainability claims. By staying informed, researching brands, and demanding accountability, consumers can navigate the greenwashing minefield and support genuinely eco-friendly practices. Together, we can protect the planet and create a more sustainable future.

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