RepRisk Reports a 28% Rise in Greenwashing Risk with Shift Toward Energy Transition Sectors
According to RepRisk's fifth annual Greenwashing Report, greenwashing risk has increased by 28% year-on-year as of June 2026. The report highlights that financial institutions remain central to this issue, with Financial Services and Banks experiencing significant growth in linked companies—40% and 23%, respectively. Transition-linked sectors such as Alternative Energy, Industrial Metals, Mining, Software and Computer Services, and Utilities now account for a larger share of greenwashing-related environmental issues than traditional high-emitting industries like Oil and Gas. The report also notes that biodiversity concerns have surpassed climate change in terms of greenwashing risk for the first time since 2022. Over five years, overall incidents increased by 112%, with scrutiny shifting toward sectors supporting the energy transition rather than just those historically associated with high emissions. RepRisk emphasizes the importance of accurate data to help financial institutions identify and mitigate these emerging risks. Philipp Aeby, CEO of RepRisk, stressed that informed capital allocation is essential for a credible low-carbon transition. Financial institutions must ensure their investments support genuine sustainability efforts rather than misleading green claims.
Topics: energy transition environmental risk ESG reporting financial services greenwashing