The accuracy and reliability of environmental, social, and governance (hereafter ESG) reporting are threatened by the presence of greenwashing which affects the quality of disclosure, complicates the decision-making process, adversely influences financial markets, and affects stakeholders’ trust in disclosed information. This study examines the academic literature on ESG disclosure and greenwashing prevention through a bibliometric analysis and systematic literature review. Our findings show that greenwashing is a complex phenomenon characterised by various forms, shapes, and levels, making it challenging to detect, measure, and develop prevention tools. The results show a growing trend in the academic literature on greenwashing with a strong focus on the establishment of greenwashing detection measures and the need for the creation of greenwashing prevention tools to ensure the reliability, comparability, and quality of corporate sustainability reporting. Understanding the challenges of greenwashing in ESG disclosures and the efforts toward greenwashing prevention carries significant implications for regulators and standard-setters, supervisory bodies, professional organizations, companies, researchers, and other stakeholders, especially in light of recent regulatory developments around the globe and the new forms and levels of greenwashing evolving in scientific research. • Greenwashing prevention in ESG disclosures analysed through a bibliometric analysis. • Performance, network, and systematic literature review analysis methods applied. • Greenwashing measurement is difficult as it has lots of levels, forms, and shades. • Greenwashing measurement methods at various greenwashing levels are systemized. • The creation of a credible greenwashing prevention tool in ESG disclosure is needed.
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Šneiderienė et al. (2024) studied this question.