Bridging the green gap: How digital financial inclusion affects corporate ESG greenwashing

The objective of this chapter is to improve the conversation regarding greenwashing by employing a business model perspective. We argue that the business model literature has the potential to significantly improve current interpretations of greenwashing by linking talk-action discrepancies to the foundational company structure. Firms that intentionally disrupt the congruence between their commitments to stakeholders (i.e., the value proposition) and other components of their business models are referred to as “greenwashing.” Furthermore, we contend that the concept of greenwashing has the potential to improve the business model literature by emphasizing businesses that have defective business structures and fail to deliver on the value propositions they claim to offer their stakeholders. This study has the potential to influence future research on the relationship between greenwashing and deficient business architectures, as well as on the ways in which firms can enhance their stakeholder interactions by modifying their business models

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Sustainabilty, Green Financing, and Corporate Management

Zournatzidou,

Farazakis,

Sklavos

et al. 2024

Advances in Human Resources Management and Organizational Development

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Despite obstacles, private financial institutions in emerging markets and developing economies (EMDEs) have begun green and sustainable lending. A survey of private financial firms in Emerging Markets and Developing Economies found that parent companies of local subsidiaries, foreign investors, other financial industry sectors (like re-insurers), and DFIs drive initiatives, not new regulations, which are still developing in most EMDEs. Uneven rules and standards make EMDE operations varied. Enterprises' concern of losing market share to conventionally financed competitors hinders green and sustainable fundraising. The “first mover disadvantage” slows financial adoption. Data and capacity restrictions complicate sustainable finance taxonomies and disclosures. Many EMDEs have green or sustainable taxonomies, but they lack granularity, breadth, data, and expertise. Surveyors watched. Financial institutions have broad freedom to identify and communicate climate risks and exposures. Disclosure gaps perpetuate “greenwashing” and unfair competitiveness.

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Bridging the green gap: How digital financial inclusion affects corporate ESG greenwashing

Cited by 4 publications

References 45 publications

Does artificial intelligence improve energy efficiency? Evidence from provincial data in China

Does artificial intelligence improve energy efficiency? Evidence from provincial data in China

The Influence of Greenwashing Methods on the Behavior of Environmentally Conscious Employees

Sustainabilty, Green Financing, and Corporate Management

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