Which of the following is an example of competence greenwashing?
A.
A company's board overstating their ESG expertise
B.
A company that is unwilling to reveal its strides toward more sustainable practices for fear of misinterpretation
C.
A company providing an incomplete picture of its environmental impact by overemphasizing carbon emissions while ignoring other factors such as toxicity
Competence greenwashingoccurs when a companymisrepresents its ESG knowledge or expertise, such asoverstating the board’s sustainability qualifications.
Option C describes “selective disclosure†greenwashingrather than competence greenwashing.
References:
CFA Institute Greenwashing Risk Guide
Principles for Responsible Investment (PRI) ESG Transparency Report
