Companies need an eco-overhaul to sidestep greenwashing perils-analysts

With green washing threats on the rise, experts outline four key board responsibilities to firmly anchor sustainability in business values.

More often than not, businesses unconsciously overstate their sustainability goals. This prevalent tendency for businesses to inadvertently exaggerate is the reason why companies in Singapore, like NTUC Fairprice, appointed a chief sustainability officer.

Whilst it is a step in the right direction, remedial efforts should not stop there as there should also be strong collaboration between the board of directors and the management of the firm.

Sara Galloway, co-head of global sustainability practice and consultant at Russell Reynolds Associates (RRA), cautioned that without successful collaboration, these firms run the perilous risk of being labeled as green washers, undermining their credibility in the eyes of stakeholders and the public.

“If the board is not supporting the management and if management’s not singing from the same hymn sheet, you start to get a disconnect, and you find that sustainability efforts risk becoming disjointed or unsuccessful,” Galloway told the Singapore Business Review.

She also said the disconnect between management and the board will leave employees looking for another job.

At the stage where ESG (environmental, social and governance) is of utmost importance in businesses, Gabriel Nam, partner at Page Executive, said businesses must take a more proactive approach to turn sustainability into their advantage apart from just fulfilling compliance reporting.