ESG-washing: analysis and empirical evidence from the market

Abstract

The thesis aims to analyze how ESG (Environmental, Social and Governance) factors are influenced by the phenomenon of greenwashing. The term was firstly used for environmental matters, however today it is used to cover social and governance fields as well. Hence, the term ESG-washing was introduced. There are different types of ESG-washing, such as purpose washing, value washing, diversity washing and pink washing. Each of them refers to a specific practice of a firm that implements a certain marketing strategy, governance strategy or type of disclosure in order to influence stakeholders about the ethical standards of the firm. The first section of the thesis focuses on the definition of ESG and the standards and regulation related to it. The second section delves into the topic of ESG-washing through a systematic literature review that helps to better understand the meaning of the term thanks to the studies conducted on the theme throughout the years. In the same section an analysis on the drivers of ESG-washing is conducted, followed by an in-depth study on the impact that the phenomenon has on the main stakeholders, namely consumers, employees, investors, as well as on the firms themselves. The third section focuses on the different types of ESG-washing, with the illustration of some examples to better understand the topic. The last part of the thesis is dedicated to the collection and analysis of real data provided by Bloomberg database, as well as the presentation of outcomes obtained through it.