The potential for greenwashing has increased as demand for ESG credentials grows — and financial services regulators are taking notice.

Regulatory and legal requirements that guard against misleading or misrepresented credentials are not new. But the environmental, social and governance (ESG) agenda has ushered in an era of hyper-transparency, amid a rise in exaggerated, misleading or unsubstantiated claims that products and services are more environmentally friendly or ethical than they are.

Regulators are clamping down. The risk of fines and regulatory probes into greenwashing initiatives and green hyperbole are mounting. And commercial and reputational cost are at stake, now more than ever, as consumers become more discerning about business sustainability standards and quality. In the financial services sector, the market for ESG-centric products has grown at a compound annual rate of 27% over the past six years.

At KPMG in Singapore, our team of professionals supports clients in identifying where risks may lie and the steps they should take to mitigate them.

Read our report for learnings, case studies and action steps that businesses can take to make genuine positive change and embed ESG practices in everything they do.

What is greenwashing?

Greenwashing implies any dishonest practices used by businesses to represent themselves as more sustainable either by giving a false impression or providing misleading information as to the sustainability of a product/service.

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