Why Greenwashing should be on the radar of every business in 2022

Greenwashing. The reputation risk that should be on the radar of every Board, CEO, Sustainability Manager and Corporate Affairs professional in 2022.

2021 saw a huge increase in net zero commitments from Australian businesses, however 2022 will need to be the year that those commitments are matched with action. 

Regulators including ASIC and APRA have warned they will “ramp up” climate disclosure monitoring. Legal cases targeting corporate greenwashing are on the rise. Investors are wary of greenwashing and ESG (environmental, social and governance) aligned investments now attract trillions of dollars in Australia alone. Consumers are voting with their wallets and taking their business elsewhere if they feel they are being duped by greenwashing. 

Greenwashing is one of the top corporate reputation risks of 2022.

So how can you protect your organisation from claims of greenwashing? 

First, you need to back up rhetoric with action. If your business is actually acting to reduce your emissions and to become a more sustainable business, that’s a good start. 

However, if investors, regulators, NGOs, customers, your staff and the public don’t know what action you are taking, you run the risk of being accused of greenwashing. 

While annual reporting and meeting regulatory requirements are important, an annual ‘tick and flick’ approach to sustainability and ESG storytelling won’t cut it. 

It’s important that businesses view their Sustainability and Climate strategies as an opportunity. It’s an opportunity to tell stories about how your business is evolving. It’s an opportunity to tell investors about how your action is protecting their investments and securing the future of their company. It’s an opportunity to attract new investment. 

A strategic approach to Sustainability and Climate communication is an opportunity to attract and retain the best talent. It’s also an opportunity to raise your profile and gain new climate conscious customers.  

So has your business got a strategic approach to sustainability communications? Does your Sustainability Manager and Corporate Affairs team regularly meet? Can your Board, CEO or executives articulate your Sustainability Strategy and tell the stories that bring it to life?

While 2021 saw governments and business around the world commit to take action on climate change, 2022 needs to be the year of action. 2022 also needs to be the year that Sustainability and Climate storytelling takes centre stage.