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UN Presses Companies to End Greenwashing and Take Real Climate Action

The United Nations calls for stricter standards and transparency to combat greenwashing and drive genuine climate progress in the corporate world.

By Medha deb

Created on Sep 26, 2025

The United Nations calls for stricter standards and transparency to combat greenwashing and drive genuine climate progress in the corporate world.

The climate crisis has reached a critical point, and the gap between corporate promises and actual progress on sustainability is a growing concern. In a bold declaration, the United Nations has urged businesses and investors worldwide to stop greenwashing—misleading claims that create a false impression of environmental progress—and instead adopt transparent, science-based standards for climate action.

What Is Greenwashing?

Greenwashing occurs when companies exaggerate, misrepresent, or fabricate their environmental or social responsibility, misleading customers, investors, and regulators. This practice undermines genuine efforts to address climate change by creating confusion, eroding trust, and slowing down real progress. Common tactics include:

Using vague or unverifiable sustainability claims
Highlighting minor green achievements while ignoring major environmental harms
Creating misleading branding or advertising that suggests products are more eco-friendly than they are
Promoting future-oriented goals without actionable short-term targets or transparent reporting

Why the UN Issued This Warning

In November 2022, during the UN Climate Change Conference (COP27), the United Nations released a decisive report highlighting the prevalence of greenwashing among major corporations and financial institutions. The report asserts that voluntary pledges and vague commitments are not enough—they must be underpinned by credible, science-based action and rigorous third-party monitoring. Without this, greenwashing will continue to delay the necessary decarbonization of economies and global climate efforts.

The UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities found that too many companies make bold climate claims without real plans or transparency. The group’s report, called Integrity Matters, sets out specific recommendations to help end deceptive sustainability practices and guide credible climate leadership in the private sector.

Key Recommendations from the UN for Ending Greenwashing

The UN’s approach to combatting greenwashing is clear. Companies must:

Set Short and Long-Term Targets: Goals should align with science-based pathways, including interim emissions targets for 2025 and 2030, not just distant net-zero promises for 2050.
Disclose Data Publicly: All climate actions and progress should be transparently reported and independently verified.
Cover Value Chains: Companies must account for all emissions, including those from suppliers and users of their products (Scope 1, 2, and 3 emissions).
Avoid Offsets as a Substitute: Offsets should only be used for hard-to-abate emissions, not as a replacement for actual reductions.
End Involvement in Fossil Fuel Expansion: No investment or support for developing new fossil fuel reserves or infrastructure.
Align Lobbying and Advertising: Marketing, advocacy, and financing should consistently reflect genuine climate commitments and not undermine them.

Why Greenwashing Is Harmful

Greenwashing is not a harmless marketing tactic—it distracts from meaningful action and erodes public trust. Some key dangers include:

Delaying Action: Companies may continue unsustainable practices under the guise of progress.
Deceiving Customers: Consumers may unknowingly support products or brands that are not aligned with their values.
Confusing Investors and Regulators: Difficulties in distinguishing genuine sustainability initiatives from empty claims can distort investment and hinder regulation.
Undermining Global Climate Goals: Greenwashing hinders the collective effort required to limit global warming to 1.5°C.

Corporate Pledges Under Scrutiny

According to the UN, more than 8,300 businesses across the globe have made net-zero commitments under initiatives like the Race to Zero campaign. However, a substantial proportion of these are criticized for their lack of transparency and robust action. Recent reports have shown that many companies fail to:

Set credible, measurable short-term emissions reduction goals
Report on progress in a comprehensive and auditable way
Avoid heavy reliance on carbon offsets or unproven technologies
Stop supporting new fossil fuel expansion directly or indirectly

An evaluation by independent organizations found a disconnect between bold statements and the reality of slow, marginal action. Failure to align business strategies and investments with stated climate goals leads to accusations of hypocrisy, prompting mounting criticism from civil society, investors, and the scientific community.

Examples of Greenwashing in Practice

Several high-profile examples highlight the scale of greenwashing in the corporate sector:

Tech and Electronics: Companies tout the use of recycled materials in products while supply chains remain dependent on fossil fuels or exploitative labor practices.
Retail and Fashion: Brands launch “sustainable” collections that represent a tiny fraction of their total offerings, without addressing the environmental impact of fast fashion.
Finance: Major banks and funds announce restrictions on coal or oil investments, yet continue to finance fossil fuel expansion through loopholes.
Consumer Goods: Products claim recyclable or biodegradable packaging, even when local recycling systems cannot process them or the claims are unverifiable.

The Role of Standards and Accountability

The UN’s Integrity Matters report urges the global community to move beyond voluntary action and self-regulation. To restore trust and accelerate real progress, it recommends:

Adopting Credible Reporting Standards: Use of internationally recognized protocols for measuring and disclosing emissions, such as the Greenhouse Gas Protocol.
Third-Party Verification: Independent auditing of climate-related claims and progress reports.
Public Disclosure: Full publication of targets, methodologies, and results, allowing stakeholders to evaluate company performance.
Government Regulation: National and international authorities must introduce comprehensive rules to define, monitor, and penalize greenwashing.

UN’s Checklist for Net-Zero Claims

To help companies and financial entities align with best practices, the UN published a checklist covering:

Setting near-term and longer-term goals
Ensuring claims cover all emissions (Scopes 1, 2, and 3)
Including both reduction and adaptation strategies
Disclosing progress annually with independent review
Phasing out coal, oil, or gas without exceptions
Stopping greenwashing in branding, lobbying, and finance

Major Challenges in Combating Greenwashing

Despite increasing scrutiny, many challenges remain:

Complex Supply Chains: Global, multi-tiered supply networks make it difficult to track and verify emissions and environmental impact.
Lack of Enforcement: In many countries, weak regulations and limited resources hinder enforcement against greenwashing.
Fragmented Standards: Different regions use different definitions and methodologies, complicating comparisons and accountability.
Corporate Resistance: Some businesses resist publishing detailed data, fearing reputational or financial risks.

The Evolving Regulatory Landscape

Momentum is growing among governments and industry regulators to clamp down on misleading sustainability claims. Recent measures include:

Stricter Advertising Rules: Jurisdictions like the UK, Australia, and the EU have introduced or updated guidelines to prohibit misleading environmental ads.
Mandatory Disclosure Regulations: Some countries now require large companies to report carbon emissions, energy use, and progress towards targets in standardized formats.
Penalties and Fines: Regulators have levied fines and sanctions for egregious cases of greenwashing, sending a clear message to the private sector.

Best Practices for Businesses

To avoid greenwashing and demonstrate genuine climate leadership, the UN and sustainability experts recommend that companies:

Set transparent, science-based targets aligned with the Paris Agreement
Appoint accountable leadership for sustainability strategy
Regularly publish independent, verified progress reports
Integrate climate action into core business operations and decision making
Promote a culture of honesty, improvement, and stakeholder engagement

Table: Greenwashing vs. Genuine Sustainability

Greenwashing	Genuine Sustainability Action
Vague or unverified environmental claims	Third-party verified data and clear reporting
Reliance on offsets without reducing own emissions	Direct reduction of emissions across all operations
Highlighting minor or selective achievements	Comprehensive strategies tackling the full value chain
Marketing eco-friendly image, not backed by action	Consistent alignment between action, advocacy, and finance
Commitments with no clear timeframe or accountability	Time-bound targets, regular, and public updates

How Consumers and Investors Can Respond

Ask companies for specific, measurable evidence of environmental progress
Seek independent verification of claims or certifications
Be wary of sweeping commitments lacking short-term goals or regular reporting
Support businesses that integrate sustainability into their products and operations, not just their marketing

Frequently Asked Questions (FAQs)

What is the difference between net-zero and carbon neutral?

Net-zero means a company or country reduces emissions as much as possible and balances any remaining emissions with removals; carbon neutral often refers to offsetting rather than direct reductions, and can be less stringent.

Why is it important for companies to cover Scope 3 emissions?

Scope 3 emissions include indirect emissions from a company’s value chain, such as suppliers and product use; they often account for the majority of a company’s climate impact and are essential to include for true transparency.

How can I spot greenwashing when choosing products or brands?

Look for evidence: verified third-party certifications, full transparency, specific actions and timelines, not just generalized environmental claims or imagery.

What action is the UN taking next to ensure corporate accountability?

The UN is developing frameworks for ongoing monitoring, rolling out detailed checklists, and pushing for stricter international standards to make greenwashing more difficult and improve public trust in corporate action.

What should genuine sustainability leadership look like in the corporate world?

It means integrating climate and environmental targets into the core strategy, rigorous reporting on all activities, engaging transparently with stakeholders, and consistently aligning lobbying and investments with stated climate commitments.

References

Author

medha deb

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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