Distorted Facts: Austrian Companies Risk Greenwashing

Potential for improvement in the quality of sustainability reports among Austrian companies is identified by the consultant Deloitte. According to an analysis, Austrian firms risk accusations of greenwashing - that is, merely portraying themselves as particularly environmentally conscious and friendly. The reports often included incomplete, unclear, or even unrealistic information regarding the impact of economic activities on society and the environment.

Willingness for Sustainability Reports in Austria is High

Since the fiscal year 2024, large companies across the EU are required to report on sustainability aspects according to the framework of the so-called Corporate Sustainability Reporting Directive, Deloitte reminded in a statement. In Austria, the implementation of the CSRD is still pending, but the majority of the affected companies are already voluntarily complying with the requirements. While this is generally commendable, a closer look at the reports reveals potential for optimization.

Real Improvements are Still Pending

"In fact, only 40 percent of the cited positive impacts also bring real improvements," said Alfred Ripka of Deloitte Austria. "Far too often, they are merely reactions to previously caused negative effects. With this distorted portrayal of their own actions, companies risk serious accusations of greenwashing." There is an urgent need for a clearer distinction between genuine positive impacts and measures to reduce negative effects.

(APA/Red)

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