Zero tolerance for greenwashing, UN chief Guterres warns companies

“A growing number of governments and non-state actors are pledging to be carbon-free — and that is good news. The problem is that the criteria and benchmarks for these net-zero commitments have varying levels of rigor and loopholes wide enough to drive a diesel truck through,” Guterres said.

In its report, the expert group has recommended that non-state entities with net-zero targets must not allow any fresh investment in fossil fuels, must present verifiable short-term emission reduction goals on the path to achieving net-zero, and, by 2025, must bring to an end all their activities that directly or indirectly lead to deforestation.

Net zero refers to a situation in which an organisation’s, or a country’s, total emissions are balanced by absorption or removal of carbon dioxide from the atmosphere. Countries have also taken net-zero targets. Most of the developed countries have promised to become net zero by 2050. China has a net zero target for 2060 while India has pledged to become net-zero by 2070.

Corporations, cities and regional governments, and even individual sporting events, have joined the net-zero bandwagon, and have been making all kinds of claims that are not easily verifiable, and often dubious. The expert group’s report is directed at such companies and organisations.

“The risk is clear. If greenwash premised upon low-quality net zero pledges is not addressed, it will undermine the efforts of genuine leaders, creating both confusion, cynicism and a failure to deliver urgent climate action. Which is why, ultimately, regulations will be required to establish a level-playing field and ensure that ambitious is always matched by action,” the group said in its report.

The group has also warned companies and other entities against buying “cheap” carbon credits to fulfil their net-zero targets. These cheap credits often lack integrity and do not represent actual reductions in emissions, the report said.

Arunabha Ghosh, CEO of Delhi based Council on Energy Environment and Water and a member of the expert group, it was important to bring in transparency and integrity into the climate actions.

“If we have to get serious about net-zero, greenwashing by corporations must stop. The expert group recommended that the corporations set out clear targets and pathways but also deliver on absolute emissions reductions by their own efforts. At the same time, actions towards net-zero must result in far greater climate investment in sustainable infrastructure in developing countries and deliver positive social and economic outcomes for vulnerable communities. Without such investments, the net-zero transition will be neither just nor equitable,” Ghosh said.

The group has also called for framing of widely-accepted regulations and adoption of new standards across all sectors.

“To effectively tackle greenwashing and ensure a level playing field, non-state actors need to move from voluntary initiatives to regulated requirements for net-zero. Verification and enforcement in the voluntary space is challenging… This is why we call for regulation starting with large corporate emitters, including assurance on their net zero pledges and mandatory annual progress reporting,” the report said.