Sustainability fraud

Sustainability fraud is on the radar of few investors and asset managers, but it is potentially much more harmful. The introduction of the EU green taxonomy will only serve as a further incentive for companies to misrepresent their sustainability performance.

“Green fraud”, also known as sustainability fraud, is a deliberate misrepresentation of sustainability data, usually taking the form of incorrect reporting in order to obtain higher ratings/rankings resulting in a better reputation, and thus a higher share price.