The intervention by governments to stamp out greenwashing is a step in the right direction and forces company boards, CEOs and executives to be much more forensic in their approach to sustainability and their wider environmental, social and governance responsibilities. The emphasis needs to be about making a balanced appraisal of a company’s current position, identifying areas where they have the most impact and tangible ways to address those issues, and by when.
Making meaningful commitments isn’t easy. It requires companies to take a thorough and holistic approach to their operations – good and bad – to properly assess where the key hotspots are and where best to focus for maximum benefit. It’s this kind of robust analysis that moves companies and their communications away from greenwashing and delivers greater transparency and trust.
Some companies have already embarked on that process by, for example, getting to grips with their Scope 1, 2 and 3 emissions or introducing a responsible sourcing policy to manage supplier relationships. Others are seeking out increasingly innovative ways to embed circular systems into their business models or challenge industry norms, moving the corporate dialogue towards people and planet, not just profit at any cost.
Reporting on sustainability goals and company performance is becoming a mandatory requirement for some larger firms, in the same way as the market expects to see detailed financial KPIs. But smaller businesses are also increasingly publishing this information to demonstrate accountability and avoid accusations of greenwashing.