Greenwashing in the context of responsible consumption and production (SDG 12): A cross-sectoral analysis of sustainability
Publication Name: Equilibrium Quarterly Journal of Economics and Economic Policy
Publication Date: 2025-12-30
Volume: 20
Issue: 4
Page Range: 1387-1423
Description:
Research background:Responsible consumption and production, articulated in Sustainable Development Goal 12 (SDG 12), has heightened global expectations for credible sustainability disclosure. Despite this, firms across sectors continue to use selective, vague, or unverifiable environmental claims that contribute to greenwashing. Although research on greenwashing has expanded, consolidated knowledge on how misrepresentation patterns vary across industries and how these practices undermine SDG 12 objectives remains limited. A clearer understanding of sector-specific disclosure behaviors is essential for strengthening accountability and supporting responsible production–consumption transitions. Purpose of the article: This study aims to provide a cross-sectoral synthesis of greenwashing mechanisms and sustainability misrepresentation, examining how disclosure tactics differ across the manufacturing, energy, fast-moving consumer goods (FMCG), automotive, tech-nology, and service sectors. The objective is to map these practices against SDG 12 expectations and highlight how they hinder progress toward responsible production and consump-tion. Methods: Using a PRISMA-based systematic review of Scopus-indexed studies, the analysis applies thematic coding and comparative sectoral assessment to identify patterns of misrepre-sentation. The review integrates evidence across multiple industries to highlight differences in performance-based, claim-based, symbolic, and impression-management tactics. Findings & value added: The results show that manufacturing and energy firms predomi-nantly engage in performance-related sustainability misrepresentation, whereas FMCG and service firms more frequently employ claim-based, symbolic, and impression-management approaches. Across all sectors, recurring practices include overstated certifications, selective reporting, and ambiguous SDG commitments, which collectively impede transparency and weaken the achievement of SDG 12. By offering one of the first comprehensive cross-industry evaluations of greenwashing within an SDG framework, the study advances the theoretical understanding of sustainability misrepresentation and identifies sector-specific risks relevant for regulators and policymakers. It also provides actionable insights into enhancing reporting integrity and accountability aligned with SDG 12.
Open Access: Yes
DOI: 10.24136/eq.3691