Some companies in Singapore seen to be 'greenwashing'

Channel NewsAsia 28 Apr 08;

SINGAPORE: According to some market-watchers, some companies are 'greenwashing' or claiming to be promoting green initiatives when they are not.

Some said the proportion of companies that are seen to be greenwashing could be as high as 30 to 40 percent in Singapore.

Adjunct Associate Professor Bob Fleming, NUS Business School, said: "I think one of the biggest dangers is that they are not being transparent in their operations. If they are overly greenwashing, there is an issue of corporate governance as well."

There are costs associated with going green and not all companies are willing to bear the additional burden.

Industries such as oil, chemical and pharmaceutical are seen as the ones more likely to be guilty of greenwashing due to the high level of waste generated in these sectors.

But the benefits of going green can outweigh the costs, and the key is to think long term.

Another market-watcher, Neil Falkner, said: "This is where we really need to shift our thinking about green initiatives. These aren't costs. At the end of the day, these are investments.

"So we shouldn't see these as social costs, but simply as a way for us to invest in communities and the environment which sustain our business. This is really looking down ten years into the future."

With concerns about the environment in the limelight, this is something that companies just cannot ignore as global investors call for greater transparency on companies' green initiatives.- CNA/so