ACCA Applied Knowledge · Business and Technology · Governance in business organisations
Zeta Co claims in its sustainability report that its products are 'fully eco-friendly' but has no evidence and ignores significant pollution from its factories. Which term best describes this practice?
The practice is greenwashing: making misleading or unsupported claims about environmental credentials while ignoring actual harm. It damages trust and can lead to regulatory and reputational consequences. Integrated reporting and environmental auditing are genuine approaches intended to give accurate, verified information.
- AGreenwashingCorrect
- BIntegrated reporting
- CEnvironmental auditing
Explanation
Greenwashing is making misleading or unsubstantiated claims about environmental performance to appear more sustainable than the company really is. Integrated reporting and environmental auditing are legitimate approaches that aim to provide accurate information, so they do not fit.
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