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ESG Reporting and the Challenge of Greenwashing in Sustainable Supply Chains: Insights from Case Studies

Meng Chen*, Jia Wang

Abstract


This study critically examines the role of Environmental, Social, and Governance (ESG) reporting in enhancing transparency within
global supply chains, focusing on the persistent issue of greenwashing. Through case studies in industries such as fast fashion, food and beverage, and technology, the research identifies key challenges in ESG disclosures, including inconsistent metrics, lack of third-party verification,
and difficulties in ensuring multi-tier supply chain transparency. The findings reveal that while ESG reporting holds significant potential to
drive sustainable practices, it is often compromised by unverifiable claims and misleading sustainability practices. To address these challenges,
the study proposes several solutions: aligning with standardized frameworks (e.g., GRI, SASB, TCFD), using blockchain for real-time traceability, and conducting independent audits across supply chains. Additionally, stronger regulatory frameworks, including mandatory reporting
and penalties for greenwashing, are recommended to ensure accountability. This research provides actionable insights for policymakers and
corporations to improve the credibility and effectiveness of ESG reporting, contributing to a more transparent and sustainable global economy.

Keywords


ESG reporting; Greenwashing; Supply chains; Transparency; Blockchain

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References


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DOI: http://dx.doi.org/10.70711/frim.v3i3.6178

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