As the financial case for sustainability grows stronger, so does the pressure to prove progress. That pressure can tempt businesses into overstating their achievements, a risk better known as greenwashing.

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Greenwashing can take many forms, from using creative language in sustainability communications to overstate impact to the more common risk of unintentionally misreporting because emissions data wasn’t accurate enough.

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Whatever the cause, the symptoms are to be avoided. Without enough data to get proper oversight of their own emissions, businesses risk being on the wrong side of the truth. With good data, businesses can take charge of their own emissions reduction journey, secure in the knowledge that they’ve got the truth on their side.

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The Accidental Greenwash: Don’t Get Scandalized

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Just the accusation of greenwashing can cause major reputational damage to businesses. With the corporate net of responsibility wider than ever, it’s easy for emissions to slip through the gaps. This is especially true with scope 3 emissions and the supply chain. The public, regulators, investors, the media and consumers have trained their ever-watchful eye on businesses with long tail supply chains, which means businesses will need to be thorough in how they measure and report emissions to avoid greenwashing.

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Insufficient or inaccurate data can lead to businesses being blindsided by greenwashing scandals without ever having intended to greenwash in the first place. Emissions blind spots are a serious reputational risk for businesses. Businesses require emissions clarity to avoid nasty surprises in the supply chain, which is why staying on top of Scope 3, the emissions that result from activities in company supply chains, is critical. Scope 3 emissions reporting can be particularly risky, as they are outside of the businesses’ direct control.

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For example, a company might claim that selling a product has the same environmental benefit as planting thousands of trees. Even if the numbers aren’t outright false, if they can’t be independently verified, they can quickly be seen as misleading.

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Early adopters are already reporting on their Scope 1, 2, and 3 emissions, but the quality of that data often falls short of financial reporting standards. Until emissions factors are tracked with the same rigor, accidental greenwashing will remain a threat. That’s why at Green Project we focus on delivering accurate, verifiable emissions data, so businesses can report with confidence and avoid the risks.

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Insulate Yourself With Good Emissions Data

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There’s no verification without data – but what data? The truth is that without good data, companies can’t make concrete claims, but the opposite is also true, without good data businesses can’t be held accountable for the claims they make.

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If greenwashing is one end of the spectrum, greenhushing is the other. With the amount of greenwashing accusations flying around and the reputational damage being caused, some companies would prefer not to publicize their green initiatives at all out of fear that they may not be as green as they say.

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Without a firm grasp of who’s doing what in their supply chain, how can companies be sure that they aren’t greenwashing? And, if they can’t be sure they aren’t greenwashing, will their emissions reports ever be a full representation of the truth and safe from greenwashing accusations?

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Supply chains are vast and intricate, and emissions data often comes from many sources. To build credible reports, businesses need insights they can rely on. Accuracy matters more than appearance, reliable data ensures sustainability claims stand up to scrutiny.

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Using good data to back up your emissions reporting is about trust, transparency and truth, but it can also be revelatory. Scope 4 are emissions avoided by company activities like offsetting or more sustainable manufacturing methods. Scope 4 data can be the building blocks of a good emissions statement, if they’re calculated accurately and verifiable.

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Don’t Go It Alone on Verification

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A thorough emissions calculator can help you understand exactly what you can, and can’t, say in your emissions reporting. It also provides a solid defense against accusations of greenwashing by grounding your claims in accurate, verifiable data.

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Accurate Scope 3 data is particularly critical, since it represents most of the companies’ emissions and is often the hardest to measure. Reliable data helps businesses identify where the biggest risks lie, prioritize resources, and take meaningful steps to address them. Having a consistent, transparent view of emissions also makes it easier to track progress and communicate with stakeholders in a way that builds trust.

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Regulatory scrutiny of sustainability claims is rising worldwide. Increasingly, businesses are expected to back their environmental claims with credible evidence, which means the risks of greenwashing are shifting from reputational to financial and legal.

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While the temptation to publish quick wins and bold claims is understandable, the real differentiator will be the quality and accuracy of your data. Reliable emissions data not only protects against accusations of greenwashing, it also gives leaders the confidence to act boldly, demonstrate alignment with science-based targets, and show stakeholders that pledges are matched by impact.

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