Reconceptualizing Greenwashing As An Investor Harm: A Critical Analysis Of Sebi's Regulatory Gap
- IJLLR Journal
- 1 hour ago
- 1 min read
Ms. Ananya Bhargava, Amity Law School, Amity University, Noida
ABSTRACT
The recent rise in Environmental, Social, and Governance (ESG) investing has revolutionized financial markets, although it has also increased the risk of greenwashing, or false or overstated sustainability reporting by companies. This paper re-conceptualizes the notion of greenwashing as not only a problem of the environment, but a type of harm done to investors, a harm that vitiates market integrity and informed judgment. It critically analyzes the regulatory framework of the Securities and Exchange Board of India in terms of gaps in ESG disclosure norms, the lack of a clear definition of greenwashing, poorly implemented, and the lack of protective measures against investors. The study, by conducting a comparative study with the international frameworks, emphasizes the need to have standardized disclosures, third party verification, and more stringent liability provisions. This paper contends that it is imperative to undertake greenwashing in terms of the investor-centric approach to achieve transparency, safeguard the investors, and achieve sustainable finance in India.
Keywords: Greenwashing, ESG Investing, SEBI, Investor Protection, Sustainable Finance, Regulatory Gap
