Page 8 - Luce 2024

P oint of View

How to solve a problem like greenwashing?

Rebekkah Markey-Towler is a To provide a starting point for this discussion, greenwashing
PhD candidate at the Melbourne could be described as referring to the range of representations,
Law School and a Residential acts or omissions that businesses and financial institutions
Tutor at JCH. Her research focuses engage in that are false, misleading or lack reasonable basis in
terms of their environmental impact.
on the intersection of financial
and climate change regulation, Policymakers, regulators and civil society groups, amongst
specifically on the regulation others are increasingly taking action to address greenwashing.
of climate change impacts to banks’ mortgage Legal interventions like court proceedings, infringement
portfolios. She is a former Research Fellow at notices, and new legislation and policy guidelines are central
to their efforts.
Melbourne Climate Futures at the University of
Melbourne and is the host of the award-winning The urgency to act is clear as the window to keep warming
podcast Climate Talks. to ‘well below’ 2°C, whilst pursuing efforts to limit the
rise to 1.5°C in line with the temperature goals of the Paris
Agreement, is narrowing fast.
Here she looks at the problem of greenwashing by
business and financial institutions. A complex problem that might not be addressed
by ‘crackdowns’
I recently heard the head of the Minerals Council of Australia, Addressing greenwashing, however, is not as simple as it
the mining lobby group in this country, profess to support seems. Whilst many companies and financial institutions
the goals of the Paris Agreement on climate change. The oil might appear to be, or actually are engaging in greenwashing,
and gas lobby association chief then chimed in saying that not all of these are instances of bad behaviour.
‘clean’ gas and carbon capture and storage would be crucial
to the energy transition. ‘And what about nuclear?’ asked the Many businesses are trying to do the right thing. Moreover,
journalist moderating the session. private sector action will be crucial to reducing greenhouse
gas emissions, adapting to the impacts of climate change and
And, as the panellists made it very clear, they’re all committed providing adequate financing for both.
to the goal of reaching net zero emissions by 2050.
However, acting on climate change is, in a number of ways,
It was hard not to react to these claims with disdain. Indeed, if complex for many, including companies and the financial
climate and energy transition delay and denialism had greatest sector. This is because climate change demands a radical
hits, this panel session at an economic and social outlook transformation in the way business has been done up to this
conference would have been playing every single one of them. point. In addition, often the problems being faced do not yet
have solutions.
The rise of greenwashing
Companies making such ‘green’ claims but failing to match In this context, ‘cracking down’ on greenwashing might not
these with action is becoming more and more common. be the best way forward. Whilst this article does not have
In other words, ‘greenwashing’ by businesses and financial the answers to ‘solve’ a problem like greenwashing, it does
institutions is on the rise across a range of sectors including give an introduction to the relationship between business
fossil fuels, transport, consumables, banking and finance and climate change, looks at greenwashing enforcement in
and beyond. Australia to date, and finally provides some brief reflections as
to ways forward.

8 LUCE Number 22 2023