Dr. Arvind Kumar*
The Advertising Standards Council of India (ASCI) revealed that 79% of green claims made by organizations in India were either exaggerated or misleading. These findings, alongside the introduction of India’s 2024 Greenwashing Guidelines and SEBI’s Business Responsibility and Sustainability Reporting (BRSR) requirements, reflect both the scale of the problem and the urgent need for enforcement that is more robust and transparent in the Indian market.
Amidst the growing wave of sustainability initiatives, there is an alarming rise in greenwashing practices that cannot be ignored. According to RepRisk’s October 2024 data, one in four climate-related ESG risk incidents globally is now linked to greenwashing-a notable increase from previous years-with the banking and financial services sectors experiencing a 70% rise in such incidents over the past year. In India, a YouGov market research study found that 71% of Indian consumers have encountered greenwashing, and 60% express concern about such practices, while only 29% trust companies’ environmental claims. The Advertising Standards Council of India (ASCI) revealed that 79% of green claims made by organizations in India were either exaggerated or misleading. These findings, alongside the introduction of India’s 2024 Greenwashing Guidelines and SEBI’s Business Responsibility and Sustainability Reporting (BRSR) requirements, reflect both the scale of the problem and the urgent need for enforcement that is more robust and transparent in the Indian market.
However, what does this mean for the future of sustainability in India and beyond?
Is the green transition real or just rebranded business as usual?
As a consumer, investor, or policymaker, how do we separate genuine action from deceptive branding?
Greenwashing is especially rampant in fast-developing nations eager to attract sustainable investments, where companies often make misleading carbon neutrality claims. For example, many firms in China and Southeast Asia label products as “carbon neutral” based primarily on offsets rather than actual emission reductions, a practice that has come under fire for lacking transparency and credibility. Reports from UNESCAP and the Asian Development Bank (ADB) consistently highlight that weak regulatory institutions and limited enforcement capacity in these regions allow companies to flout environmental norms with minimal consequences, undermining the credibility of sustainability commitments and slowing genuine progress toward climate goals.
Green Optics, Dirty Reality
Multinational corporations, especially in the oil and energy sectors, have become emblematic of greenwashing, giants like BP rebranding as “Beyond Petroleum” and installing solar panels at select stations while continuing major investments in fossil fuels. Shell running public campaigns about emissions reduction despite being responsible for around 2% of global CO2 emissions annually and maintaining substantial oil and gas operations. Watchdogs, civil society groups, and intergovernmental organizations have strongly criticized these practices like Earthsight’s exposé of IKEA’s use of illegally sourced, yet “sustainably certified,” timber and the Advertising Standards Authority’s action against misleading carbon claims by Quorn Foods illustrate the global scale of the problem. The surge in ESG investment trends has intensified the pressure on companies to appear compliant, prompting some to exaggerate or fabricate their sustainability credentials to attract capital and satisfy investor expectations. In India, similar patterns are emerging; energy companies like Reliance Industries have promoted their renewable initiatives while continuing significant investments in fossil fuels, drawing criticism for overstating their green impact and exploiting regulatory loopholes to maintain a positive image. These examples underscore how, under mounting ESG and regulatory scrutiny, both global and Indian firms sometimes prioritize optics over genuine environmental progress.
From Ignorance to Accountability
India presents a compelling paradox in its sustainability trajectory, while the nation has pledged ambitious goals such as achieving Net Zero by 2070, implementing the SDGs, and adopting frameworks like the Energy Conservation Building Code and Jal Shakti Abhiyan, widespread non-compliance undermines these efforts across critical sectors. A 2024 analysis of ESG disclosures from 300 top Indian companies revealed that only 25% conducted comprehensive value chain assessments for environmental impact, indicating serious transparency gaps. Even as SEBI mandates Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed firms, recent reforms have deferred value-chain disclosures and moved key requirements to a voluntary basis, weakening accountability. In the energy sector, the Perform, Achieve and Trade (PAT) scheme, though a commendable initiative under the Energy Conservation Act, faces major challenges. The Bureau of Energy Efficiency (BEE) reported in 2023 that nearly 40% of designated consumers failed to meet their energy efficiency targets under PAT Cycle IV, further diluted by the oversupply of Energy Saving Certificates (ESCerts) and lax penalty enforcement.
Similarly, in the water-intensive industries such as textiles and leather, compliance with recycling and reuse norms remains inconsistent due to limited data transparency and weak monitoring. A 2023 assessment found that in over 60% of India’s monitored industrial clusters, data on wastewater reuse was either unavailable or unverifiable. The green building sector also faces a credibility crisis: while many structures boast IGBC or GRIHA certifications, a 2024 post-certification audit of 150 buildings in metro areas revealed that over half failed to meet their promised performance standards in areas such as energy consumption and water use. These recurring patterns of regulatory leniency, lack of enforcement, and insufficient follow-up are allowing companies to exploit loopholes, inflate green credentials, and continue unsustainable practices.
Despite having strong environmental frameworks, India often struggles with enforcement. Penalties like fines or license suspensions rarely act as deterrents due to weak oversight, lengthy appeals, and the influence of corruption and industry lobbying. Public awareness around environmental rights and corporate accountability remains low, limiting pressure on firms to comply. Moreover, sustainability regulations often operate in silos, disconnected from broader planning, leading to fragmented implementation.
Way Forward
To move forward, India must prioritize robust auditing and independent third-party verification of sustainability claims. Transparent, regular disclosure of ESG performance should be mandatory, and executive compensation must be linked to verified environmental outcomes to promote genuine progress over superficial compliance. At the same time, enhancing public engagement is crucial. Consumer education, investor activism, and empowering civil society watchdogs can significantly increase corporate accountability. Finally, leveraging advanced technologies like AI and blockchain for real-time tracking of emissions, supply chains, and ESG metrics can dramatically improve transparency and trust—ensuring that environmental regulations are not just symbolic, but tools that deliver measurable, lasting change.
In a world where sustainability is both a necessity and an expectation, greenwashing threatens real environmental progress. Misleading claims and weak enforcement especially in emerging economies like India erode trust and hinder genuine action. To counter this, robust regulation, transparent verification, public engagement, and tech-driven accountability are essential. Only then, can the green transition deliver lasting impact and truly support the fight against climate change.
*Editor, Focus Global Reporter
