The views and opinions expressed in this article are those of the thought leaders as individuals, and are not attributed to CeFPro or any particular organization.
By Søren Agergaard Andersen, Chief Risk Officer, Nordea Asset Management
What reputational risks could an organization face if they are perceived to be greenwashing?
Reputational risk is by default a very difficult risk to manage. Even when you believe you are doing everything correctly, there will be people or organisations with different opinions that can challenge you. If an organisation is perceived to be greenwashing, it risks negative media exposure, which most likely would originate from regulators or NGOs. Both of these parties rightfully have their strong opinions and will monitor and control. Another effect is that an organisation will lose business – both directly and opportunities. Many market participants have defined strict policies and will of course have to be careful about which business partners they chose.
Most importantly an organisation risks to lose the trust that has been built up, and that part can be difficult to regain. Opinions are very strong when it comes to greenwashing, and if you are associated with this, it will take a long time to become a trustworthy market participant again in certain areas. Losing the trust with regulators also means that the organisation will risk further regulatory scrutiny.
You may also be interested in…
Have you made your free account?
