Environmental, Social, and Governance (ESG) Factors and Green Productivity: The Impacts of Greenwashing and Competence Greenwashing on Sustainable Finance and ESG Investing

Schumacher, Kim

doi:10.2139/ssrn.4303609

Cited by 13 publications

(9 citation statements)

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“…greenwashing). Greenwashing is the practice of marketing products, services and financial instruments as “green,” “sustainable,” “carbon neutral” or “net zero” when in fact they do not meet basic environmental, climate, or sustainability standards of verifiability or credibility (Schumacher, 2022). Green bonds present an incentive for companies to raise funds with potentially lower financing costs under the name of green.…”

Section: Challenges In Green Finance and Sustainability Disclosurementioning

confidence: 99%

Green finance, sustainability disclosure and economic implications

Liu

2023

FREP

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PurposeIn this study, the authors provide a systematic literature review of articles in the emerging areas of green finance and discuss the status and challenges in sustainability disclosure, which is crucial for the efficiency of green financial instruments. The authors then review the literature on the economic implications of green finance and outline future research directions.Design/methodology/approachThe authors use the analytical framework – Search, Appraisal, Synthesis, and Analysis (SALSA) to conduct the systematic review of the literature.FindingsIncreasing public attention to the environment motivates the use of green finance to fund environmentally sustainable projects, and the rise of green finance intensifies the demand for environmental disclosure. Literature has documented tremendous growth in sustainability reporting over time and around the globe, as well as raised concerns about how such reporting lack consistency, comparability, and assurance. Despite these challenges, the authors find that in general, the literature agrees that a firm’s green practice is positively associated with its financial performance and negatively related to a firm’s cost of capital. Green finance is also found to bring about enhanced risk management and economic development.Originality/valueThe authors provide one of the first reviews of green finance, sustainability disclosure and the impact of green finance on financial performance, capital market and economic development.

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Section: Challenges In Green Finance and Sustainability Disclosurementioning

confidence: 99%

Green finance, sustainability disclosure and economic implications

Liu

2023

FREP

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“…The investment industry now depicts almost 50% of funds as being invested under emerging ESG protocols. But studies show that many organizations are hiring ESG experts with limited knowledge on climate science or experience in the tasks they are conducting, leading to greenwashing (Schumacher, 2020;Whelap, 2021).…”

Section: Climate Homicide and Legal Actionmentioning

confidence: 99%

From climate science to climate action

Shrivastava,

Kasuga,

Grant

2023

Glob. Sustain.

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Non-technical summary Despite 50 years of good science showing the urgency for action on remedying climate change, the business and political worlds have been exceedingly slow in actualizing climate solutions. Now excess climate-related deaths have mounted to more than 5 million people per year. In this Intelligence Briefing, we identify a few targeted driving actions through economic taxation, ending subsidies, and pursuit of legal cases for climate homicide, among many others. Scientists can play a vital role in providing supporting scientific evidence for policies and prosecutions, and model climate behaviors in their personal and professional lives. Technical summary Based on our analysis of the current global situation regarding carbon (CO2) in the atmosphere, we note that the earth has reached a dangerous 420 ppm, compared to staying under the 350 ppm necessary for human sustainability; and carbon concentration in the atmosphere is still climbing, as fossil fuel firms are continuing to delay and dilute regulatory efforts. This paper suggests action on several fronts. Governments can impose improved taxation regimes that involve unitary, windfall, and luxury taxes on carbon and the consumption of natural assets. Cutting subsidies to fossil fuel firms via COP actions can reduce carbon, by making renewable energy more competitive. We suggest recognizing the excess deaths by carbon pollution as homicide and charging responsible companies as was done in the case of asbestos and tobacco. If timely action is not taken, we caution about the potential rise of climate violence of emerging ‘new politics’ and increased global population displacement. Science, government, and business sectors need to collaborate in transdisciplinary ways to produce further actionable knowledge. Scientists can lead by example by reducing their own carbon footprints. Social media summary Fund climate action by taxing billionaires, eliminating subsidies, and suing fossil companies for climate homicide. The science community is focused on and committed to systems changes – seeking both natural systems, and social and economic systems to be sustainable. Yet systems that are in-place now producing carbon dioxide (herein aka carbon), are not taking adequate scientifically recommended actions; or worse, they are changing in the wrong directions. How can we move from producing more scientific knowledge to science-based actions, and what can scientists do to support such actions? In this Intelligence Briefing, we suggest some pathways for action.

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“…The immediate financial impact of pollution can be opaque. There is a competence deficit in industry (Schumacher 2022). This is exacerbated by a cottage industry of courses, which are not necessarily taught by subject matter experts.…”

Section: Introductionmentioning

confidence: 99%

Climate Change and Climate Finance

2023

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Cooperation and Integration (RCI) and Trade Division in the Climate Change and Sustainable Development Department of the Asian Development Bank (ADB). In her current capacity, she is responsible for managing ADB operations and knowledge on RCI and trade. She leads a team of experts to develop strategies and approaches to support RCI and to provide guidance in design and implementation of ADB RCI and trade projects. During her progressive career within ADB, she has been a main author and contributor to ADB's major publications including Asian Development Outlook (ADB's flagship publication),

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Environmental, Social, and Governance (ESG) Factors and Green Productivity: The Impacts of Greenwashing and Competence Greenwashing on Sustainable Finance and ESG Investing

Cited by 13 publications

References 0 publications

Green finance, sustainability disclosure and economic implications

Green finance, sustainability disclosure and economic implications

From climate science to climate action

Climate Change and Climate Finance

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