Green claims on paper face rising transparency demands in the ESG era

Ahead of the shift to a green economy, more and more enterprises are actively publishing environmental, social, and governance (ESG) commitments as part of their growth strategy. Alongside this trend, greenwashing is rising, as green claims lack verifiable evidence, data to substantiate claims, or are exaggerated relative to actual implementation. Warning signals from markets and investors From sustainability reports to campaigns about “green” products, the green image is becoming an indispensable part of corporate identity. Alarming evidence of greenwashing has appeared clearly in many developed markets, especially Europe, which leads in building green standards. According to a synthesis report by the European Commission (EC), more than 53% of corporate environmental claims in Europe were rated as “ambiguous, misleading, or unsubstantiated,” while 40% had no supporting evidence. These figures reflect a notable reality: the prevalence of green claims far outpaces verifiable support. From a capital markets perspective, PwC’s Global Family Business Survey shows as many as 94% of investors believe that a company’s sustainability reports still contain unverified statements. The trend is not limited to skepticism; it has become a demand for data. Mr. James Chalmers, Global Audit Leader at PwC UK, stated in the report that investors are asking increasingly detailed and stringent questions about climate and ESG data, rather than accepting qualitative commitments. This demonstrates that the standard for assessing a business has shifted from “there is a commitment” to “there is evidence.” Similarly, according to the European Securities and Markets Authority (ESMA), the number of suspected greenwashing cases in the financial sector rose 26% in 2023. This increase reflects growing supervisory pressure and suggests legal risk around nontransparent environmental claims is becoming tangible. These developments are shaping a new norm where all ESG information, especially environmental data, must be verifiable by data and independently confirmed. Vietnam: a large gap between commitments and implementation In Vietnam, the move toward “greening” businesses is rapid, particularly as exporters meet international market requirements. PwC’s ESG Progress Tracker 2025 shows that 89% of Vietnamese firms have already adopted ESG or plan to implement ESG within 2–4 years, indicating very high interest among the business community toward sustainable development. However, substantive implementation remains limited. Only 19% of firms report fully integrating ESG factors into their business models, and most are still transitioning from awareness to action. A data capability gap is most evident: while 78% have started collecting ESG data, only 3% use advanced analytics, and only about 33% have independent audits of their ESG reports. This means most data do not yet meet the reliability and standardization required. [Illustrative ESG image caption] Transparency as a new “passport” to integration and competitiveness In the face of tightening global standards, “green” is no longer a storytelling or marketing tale; it is a governance challenge grounded in data, systems, and verification. New rules in Europe and many advanced markets require companies to publish emissions by scope, trace the origin of inputs, and perform independent audits of ESG reports. These requirements are gradually becoming prerequisites for participation in global supply chains. The shift from “greenwashing” to “green proof”—proving green with data—reflects a fundamental change in how markets evaluate firms. In the ESG era, it is not enough to be green; one must prove it, and the level of transparency will determine the depth of a company’s participation in global value chains. Vietnam shows that many sustainability reports remain qualitative, lacking quantitative indicators such as carbon emissions, energy use, or product life cycles. This reduces comparability and can hinder international market acceptance. Thus greenwashing is not only a reputational risk but also a real economic risk. First, there is the risk of losing export markets as partners demand transparent, verifiable data. Second, there is financial risk as a company with opaque ESG data may be judged higher risk and face a higher cost of capital. Third, legal risk is increasing as environmental disclosure rules tighten. Conversely, transparency is becoming a competitive advantage. Firms able to measure, govern, and publish ESG data consistently with verification will enjoy clear advantages in market access and capital. ESG practice: opportunities to attract green capital and strengthen supply chain competitiveness Governance transparency and ESG data management hold the potential to attract green capital and improve supply chain competitiveness. ESG as a passport for integration and enhanced competitiveness Regulatory updates indicate that ESG data must be verifiable and auditable; this aligns with ESG becoming integral to corporate governance and global market participation. Ultimately, Vietnam demonstrates that while commitments are rising, practical integration lags, underscoring the importance of robust data systems, governance, and independent verification to avoid greenwashing and maximize participation in global markets.