Can artificial intelligence uncover greenwashing?

Delve into Generative AI's world and discover its crucial role in exposing greenwashing in sustainability reporting.

In a world where sustainable business practices are crucial for addressing climate change, greenwashing poses a significant challenge to the credibility of sustainable products and initiatives in the market. Greenwashing involves misleadingly portraying products or actions as sustainable without sufficient evidence. When consumers are misled, this can undermine genuine sustainable efforts.

Skift Business Climate Leaders is a business-driven climate initiative, spearheading the battle against greenwashing. With a goal of making a substantial contribution in the fight against climate and environmental crises, Skift, in collaboration with other key environmental and sustainability organizations, has introduced the “Guide Against Greenwashing.” This guide provides clear, ethical and responsible business communication guidelines in a green context to combat greenwashing in the market.

With expertise in sustainability and technology, EY, in collaboration with Variant and Energi.ai, has developed a prototype that utilizes generative AI (GenAI) to aid in the fight against greenwashing. This technology offers more than just advanced data processing; it can effectively analyze intricate texts, such as sustainability reports, identify problem areas, and offer suggestions for improvement.

The tool created by EY, known as the "Greenwashing Compass," enables companies to upload texts for analysis based on greenwashing risks and the criteria outlined in the “Guide Against Greenwashing.” In return, companies receive an assessment of the greenwashing risk, along with justifications and recommendations for improving their communication to minimize the risk.

Like most prototypes, the "Greenwashing Compass" still has its limitations and potential for further development. The early launch’s goal is to gather feedback from relevant companies using the tool to ensure it meets the market's needs as effectively as possible. Over time, the quality of the assessments will improve as we fine tune the solution to capture more nuances in the texts.

Through this project, we aim to simplify companies' efforts to ensure honest, transparent, and fact-based communication. We believe that by combining human insight with the power of GenAI, we can create a wave of positive change, build trust, and help businesses move toward a sustainable future.