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Sustainability assurance, if not done right, could worsen greenwashing

 Michelle Quah

Michelle Quah

Published Tue, Jan 24, 2023 · 05:50 AM
    • A recent study has set alight concerns that issues with the current practice of sustainability assurance could increase the threat of greenwashing rather than diminish it. PHOTO: REUTERS
    • A recent study has set alight concerns that issues with the current practice of sustainability assurance could increase the threat of greenwashing rather than diminish it. PHOTO: REUTERS SIPHIWE SIBEKO

    THE thirst for third-party assurance of sustainability disclosures has grown significantly of late, but the growth of the practice itself has not been without its issues.

    A recent study has flagged the possibility that such concerns, if left unchecked, could escalate the threat of greenwashing that sustainability assurance is meant to diminish.

    Such pitfalls are not unique to just certain markets – and investors here would do well to acquaint themselves with them to avoid falling into a knowledge trap.

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