Greenwashing and Sustainability Disclosure in the Climate Change Context: The Influence of Third‐Party Certification on Chinese Companies

Enrico Battisti, Shaocong Bo, Felice Petruzzella and Antonio Salvi

Business Strategy and the Environment, 2025, vol. 34, issue 6, 7851-7863

Abstract: This study explores the relationship between sustainability disclosure and greenwashing among Chinese companies in the context of climate change, with a focus on the moderating role of third‐party certification. The analysis is based on data from 963 A‐share‐listed companies on the Shanghai and Shenzhen Stock Exchanges, covering the period from 2016 to September 2024. Sustainability disclosure and greenwashing‐related data were obtained from the LSEG and Huazheng databases. ISO standards were used as a proxy variable for third‐party certification, and data scraping was performed using Python via an API interface. Greenwashing was measured as the discrepancy between preperformance and postperformance, with larger gaps indicating higher levels of greenwashing. A mixed‐effects regression model was employed, controlling for fixed effects (year) and random effects (region and industry). The results show that, in theory, third‐party certification has significant potential to reduce information asymmetry and enhance the reliability of sustainability disclosure. However, when standards are weak or poorly implemented, third‐party certification may inadvertently promote greenwashing behavior. This study underscores the importance of establishing robust third‐party certification and sustainability disclosure frameworks to effectively address greenwashing. It offers recommendations for policymakers on strengthening third‐party certification regulations and urges companies to adopt more authentically sustainable practices. Additionally, it provides strategic insights for stakeholders to advance reliable third‐party certification measures, ensuring genuine environmental efforts and contributing to global climate change mitigation.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.70000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:6:p:7851-7863

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().