AUDITING GREENWASHING: THE ROLE OF AUDITORS IN DETECTING MISLEADING SUSTAINABILITY CLAIMS

Abstract:Greenwashing presents substantial challenges to the credibility of sustainability reporting, as it undermines stakeholder trust and hinders genuine environmental accountability. This study aims to explore the critical role of auditors in identifying and mitigating greenwashing practices across various industries. Employing a mixed-methods research design, data were collected through surveys and interviews with auditing professionals and sustainability experts from six countries. The findings reveal several persistent challenges, including the absence of standardized frameworks, limited transparency, and the complex nature of ESG data. The research emphasizes the potential of advanced technologies such as AI and blockchain to enhance the accuracy and reliability of audits. It further provides actionable recommendations for auditors, policymakers, and organizations to foster greater transparency and accountability in sustainability reporting. The study contributes to the ongoing discourse on promoting ethical corporate behaviour by proposing innovative strategies to combat greenwashing and improve the integrity of ESG disclosures. In conclusion, the role of auditors is underscored as pivotal in ensuring the authenticity of sustainability claims, thereby reinforcing stakeholder trust and fostering a culture of accountability.

 

Keywords: Greenwashing, Sustainability Reporting, Auditing, Transparency, Accountability.