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Avoiding the risk of greenwashing “In Australia, taking early action is becoming more urgent due to the current risks of greenwashing. This concept has recently graduated from being a reputational risk to a regulatory issue across Australia’s corporate, financial and consumer ecosystems.
We must have zero tolerance for net zero greenwashing.” Yet the implication that all corporate climate action is tantamount to greenwashing is simply wrong. Business leaders now have the scientific evidence that taking climate action will boost their corporate success. C within reach.
Net-zero pledges have become commonplace among corporations, financial institutions and cities, but questions abound as to whether those companies and governments have real plans in place to achieve them. Broadly speaking, net-zero pledges amount to mere aspiration or greenwashing if they are not backed by science-based strategies.
They recognized that without reliable climate-related financial information, assets could be mispriced and capital could be misallocated, meaning the global economy potentially could face a tumultuous transition to a low-carbon future. Disclosure also prevents greenwashing. So, the TCFD was born.
The final version was set up to address the information gap between various firms’ interactions with biodiversity in nature and the impacts on financial performance and longer-term financial risks.
In 2006, the United Nations Principles for Responsible Investment (PRI) issued a report that suggested environmental, social, and governance data be a mandatory part of corporatefinancial evaluations. The individuals behind the PRI report represented a multinational group of investment experts.
Governments are being called on to put some regulatory muscle behind corporate net-zero pledges to ensure they don’t amount to mere greenwashing. . We must have zero tolerance for net-zero greenwashing. -UN The planet cannot afford delays, excuses, or more greenwashing.” . UN Secretary-General Ant ó nio Guterres.
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