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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Kaveri Chemicals Ltd., a listed company, claims in its brochure that its new product line is 'fully eco-friendly' though only 5% of its operations use any cleaner process, and no data supports the claim. This practice is best described as:

This is greenwashing, because the company makes an exaggerated, unsupported environmental claim that misleads stakeholders about its real performance. Offsetting, taxonomy alignment and integrated reporting are legitimate concepts that rely on evidence rather than unsubstantiated marketing assertions.

  1. ACarbon offsetting
  2. BGreenwashing, which misleads stakeholders about environmental performanceCorrect
  3. CGreen taxonomy alignment
  4. DIntegrated reporting

Explanation

Making unsubstantiated or exaggerated environmental claims is greenwashing. Carbon offsetting is compensating emissions elsewhere, and taxonomy alignment requires evidence of meeting criteria. Integrated reporting is a reporting approach, not a misleading claim.

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