Work

Beyond Corporate Environmental Disclosure: Tangible Efforts or Greenwashing? The Case of Italian Non‐Financial Listed Companies

Year: 2025

Type: article

Abstract: ABSTRACT Environmental claims are becoming increasingly common in corporate disclosures, but whether they correspond to genuine environmental action rather than greenwashing remains unclear. This paper explores the relationship between companies' environmental claims and their tangible efforts in pursuing environmental sustainability objectives, proxied by environmental investment initiatives. Analyzing Italian non‐financial companies listed on the FTSE Italia All‐Share Index between 2018 and 2021, the paper shows that companies issuing sustainability plans with a specific environmental commitment are more likely to undertake environmental investment initiatives compared to other companies. Conversely, companies that merely report on environmental performance or declare carbon neutrality goals do not exhibit statistically different corporate behaviors in terms of environmental investment initiatives, raising concerns about potential greenwashing. This paper contributes to the greenwashing literature by addressing limitations of prior research that focused mainly on actual environmental performance, emphasizing instead the relevance of considering firms' efforts in pursuing environmental sustainability objectives.

Source: Sustainable Development

DOI: 10.1002/sd.3544

Authors: Sara Ratti, Marika Arena, Giovanni Azzone, Laura Dell'Agostino

Institutions: International Institute for Management Development, Politecnico di Milano

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: hybrid

Estimated APC paid: $4,250