Greenwashing antagonism on SRI examples: modern approaches to detection and prevention

Abstract

Attracting capital, increasing competitiveness, minimizing reputational and regulatory risks, avoiding pressure from governments and international organizations – all these factors encourage organizations to adjust their development strategies towards socially responsible investment (SRI). The diversity of terms associated with the sustainability agenda, combined with changing investor expectations of SRI-related concepts, increases the likelihood of misuse of funds and misuse of terms (greenwashing), which may affect the credibility, demand and dynamics of SRI instruments. The relevance of the research topic is supported by the intensification of international organizations in dealing with SRI misinformation claims. Despite the annual growth rate of academic research, it focuses on the review of greenwashing of production processes, while the pattern of its formation, approaches to detection and prevention in SRI remain under-researched. In this study, the author aims to obtain a comprehensive overview of current approaches to detecting and preventing greenwashing. The methodological and theoretical basis of the research is the use of system analysis, which allows to ensure the integrity of the research, empirical and theoretical scientific methods (induction and deduction) are applied. It is noted that the most developed in the world is the ecological taxonomy of the European Union, on the basis of which draft laws on labeling SRI instruments are being developed. International organizations and regulators need each other's assistance in developing and creating common standards and international certification systems to increase transparency and reliability of company practices. An independent audit should be carried out for control purposes. The article investigates trends in SRI's antigreenwashing practices, and determines the attractiveness of SRI indexes for risk-averse investors.