The International Sustainability Standards Board (ISSB) recently released a new set of G20-backed global rules aimed at helping regulators crack down on greenwashing.
- Greenwashing is the process of conveying a false impression or misleading information about how a company’s products are environmentally sound.
- Greenwashing involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.
- In addition, greenwashing may occur when a company attempts to emphasize sustainable aspects of a product to overshadow its involvement in environmentally damaging practices.
- Companies can also greenwash initiatives with vague claims that don’t provide real data or scientific validation for the claims.
International Sustainability Standards Board (ISSB):
- It was created in 2021-22 to develop a worldwide standard for sustainability reporting.
- It is part of the independent International Financial Reporting Standards (IFRS) foundation, which also writes accounting rules used in more than 100 countries.
- The mission of the ISSB is to develop in the public interest—a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs.