Greenwashing in Net Zero commitments is one of the most pressing challenges facing the ESG movement today. As someone who has worked in sustainability leadership for over two decades, I’ve seen how ambitious climate pledges can drive meaningful change—but only when they are backed by credible action. Unfortunately, more and more companies are making net zero promises without transparent plans, creating a gap between words and reality.

According to the UN High-Level Expert Group, the majority of corporate net zero pledges today lack the integrity and transparency needed to support real emissions reductions.

The Appeal of Net Zero—and the Problem Beneath It

Net zero has become a badge of corporate responsibility. Investors expect it, consumers value it, and regulators are beginning to enforce it. But as companies race to appear climate-conscious, many are falling into the trap of greenwashing.

We often see companies:

• Publish net zero pledges with no short-term targets

• Depend heavily on carbon offsets instead of reducing their emissions

• Avoid reporting scope 3 emissions—despite them representing the majority of emissions

• Use vague terms like “aim to be net zero,” without plans or accountability

• Skip third-party validation or regular progress updates

These tactics mislead stakeholders and erode trust in corporate sustainability.

Why This Undermines ESG Progress

Greenwashing doesn’t just damage a company’s brand—it weakens the credibility of ESG as a whole. When net zero becomes a PR slogan instead of a verified goal, it misinforms investors and delays necessary climate action.

A strong ESG strategy must be rooted in accountability, transparency, and measurable progress. As the OECD warns, greenwashing poses a serious threat to sustainable finance and long-term trust in ESG data.

What Makes a Net Zero Pledge Credible?

Not all net zero claims are created equal. Here’s what separates genuine climate leadership from empty rhetoric:

• Science-Based Targets aligned with a 1.5°C pathway

• Scope 1, 2, and 3 coverage of all emissions sources

• Interim milestones for 2025 or 2030—not just 2050

• Transparent reporting using globally accepted standards such as the Greenhouse Gas Protocol

• Responsible use of offsets, after deep emissions cuts

• Independent third-party assurance of results

These elements are critical for building trust and delivering real impact.

Growing Regulatory and Stakeholder Pressure

Governments and stakeholders are beginning to take action against misleading claims. The EU’s Corporate Sustainability Reporting Directive (CSRD) and the U.S. SEC’s proposed climate disclosure rule are reshaping how companies report climate targets.

Enforcement is rising too. In the UK, the Advertising Standards Authority has already banned climate-related ads from oil and gas companies for being misleading. ESG litigation is also on the rise globally. According to a Bloomberg report, the UN has publicly warned that most net zero pledges by companies currently fall into the greenwashing category.

What ESG Professionals Must Do

For ESG leaders and sustainability professionals, this is a pivotal time. We must:

• Ensure that climate goals are backed by real strategy and governance

• Push for integration between sustainability, operations, and finance

• Improve emissions data accuracy and scope 3 visibility

• Communicate with clarity, honesty, and transparency

We are responsible for guiding companies away from greenwashing and toward real sustainability performance.

Final Thoughts: From Claims to Credibility

Greenwashing in Net Zero commitments is more than a branding issue—it’s a breach of trust. If we allow these empty promises to persist, we risk derailing genuine progress on climate change.

Net zero must be more than a marketing term. It should reflect a company’s long-term transformation, rooted in science and measurable action. Let’s hold ourselves—and each other—to that standard.