Implementing blockchain technology enables organizations to record ESG metrics in a decentralized and immutable manner, ensuring real-time, auditable tracking of sustainability initiatives. This approach mitigates the risk of greenwashing—where companies provide misleading information about their environmental practices—by providing stakeholders with verifiable and tamper-proof data. By integrating blockchain into ESG reporting, organizations can enhance accountability, improve data accuracy, and build trust with investors, regulators, and the public. The study “Using Blockchain and Smart Contracts to Combat Greenwashing in Environmental Disclosures” examines the prevalence of greenwashing in corporate environmental reports and proposes a blockchain-based framework to address this issue. The authors define six types of greenwashing risks and demonstrate how blockchain and smart contracts can create automated controls and provide tamper-resistant audit evidence, thereby enhancing the credibility of ESG disclosures.
