ESG Risk Disclosure and the Risk of Green Washing

There have been growing calls from capital market participants, regulators and other stakeholders around the globe for transparent measurement disclosure of information about financially material environmental, social governance (ESG) Risks. Diverse approaches to objectives sustainability standards frameworks pose threat increasing greenwashing, a term which encompasses wide range actions exaggerate misrepresent ‘green’ credentials . Traditional financial reporting is regulated, mandatory, required meet qualitative characteristics; relevance, reliability, comparability, materiality understand ability. However, ESG problematic due quality does not above criteria. Apart that regulated in most part world. A global framework needed prevent fragmentation, provide greater transparency reduce complexity could mitigate risk greenwashing as increasingly considered be fundamental effective sustainable business performance.