Greenwashing Scrutiny Shifts Toward Energy Transition Projects

The report, which tracks 1,594 companies linked to greenwashing in the year ending June 2026, highlights a fundamental change in how environmental claims are policed. While the share of greenwashing incidents associated with the oil and gas sector dropped from 17% to 12% over the last four years, transition-linked sectors—including alternative energy, utilities, and industrial metals—saw their combined share climb to 29%. This shift reflects rising skepticism toward the technologies and materials essential for a low-carbon economy.

Financial institutions remain at the epicenter of this risk, accounting for one-fifth of all sector linkages. RepRisk recorded a 40% year-on-year increase in greenwashing connections for financial services firms and a 23% rise for banks. CEO Philipp Aeby noted that as capital accelerates toward climate solutions, banks and asset managers must employ higher-quality, auditable data to distinguish between credible transition efforts and deceptive marketing.

Simultaneously, the nature of environmental scrutiny is evolving. For the first time in five years, concerns regarding biodiversity and ecosystems have overtaken climate change and emissions as the primary driver of greenwashing incidents. Between 2024 and 2026, ecosystem-related linkages nearly doubled to 300, signaling that investors and regulators are now applying stricter standards to nature-related claims alongside carbon reduction promises.