Abstract

The practice of deceiving stakeholders by falsely portraying an organization’s operations, products, or policies as environmentally or socially responsible termed “greenwashing” in the field of Environment, Social, and Governance. Concerns regarding greenwashing had grown as the ESG factors had become more crucial for uplifting Corporate Governance and for influencing investor’s decisions. This paper examines the relationship of greenwashing and insufficient ESG legal framework, examine how governance, regulatory monitoring, and investor due diligence allow for false sustainable claims. Through empirical analysis and case studies, this study emphasizes how the mechanism must be put forward to ensure the pace in world run thus, guaranteeing true sustainability rather than being used as a cover for corporate deception.

Keywords