Greenwashing will become more pronounced: SEBI’s Amarjeet Singh

Greenwashing will become more pronounced: SEBI’s Amarjeet Singh

As sustainability takes centre stage amidst growing climate risk to businesses, greenwashing and vague commitments will be called out, he says

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SEBI flags greenwashing risk, urges firms for credible sustainability plansSEBI flags greenwashing risk, urges firms for credible sustainability plans
Richa Sharma
  • Jun 15, 2026,
  • Updated Jun 15, 2026 12:33 PM IST

The challenge of greenwashing will become more pronounced as sustainability claims proliferate, and regulators will need to scale up their oversight capabilities, said SEBI Whole-Time Member Amarjeet Singh.

“Vague commitments will no longer pass muster. Credible transition planning will become essential. Companies will need to go beyond intent and articulate practical, time-bound pathways, backed by clear metrics and financial implications,” said Singh.

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    Greenwashing refers to misleading investors or consumers by overstating environmental or sustainability credentials.

    According to Singh, the journey will not be without its challenges, in particular, the fundamental tension between profitability and sustainability.

    The short-term gains rewarded by the market are more visible, and the long-term climate risk is underpriced. A more nuanced understanding of value needs to be developed.

    On the pushback happening in Western markets, Singh said that political headwinds in some jurisdictions are real and political shifts do not make climate risk disappear.

    “A company exposed to water scarcity or carbon pricing faces those risks regardless of regulatory mandates. Investor-led pressure will therefore continue to sustain the momentum for voluntary sustainability disclosures, even in the rollback or relaxation of regulatory mandates. That pressure isn’t going away. As we look to the future, several themes are likely to shape the sustainability landscape,” he further said.

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    He says that there is an increasing connection between financial and sustainability reporting.

    "This shift recognises the interlinkage between the financial risks a company faces from climate change and the impact that it creates for the planet. Integration of these perspectives will enable a better understanding of the risks and opportunities faced by a company," he added.

    Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

    The challenge of greenwashing will become more pronounced as sustainability claims proliferate, and regulators will need to scale up their oversight capabilities, said SEBI Whole-Time Member Amarjeet Singh.

    “Vague commitments will no longer pass muster. Credible transition planning will become essential. Companies will need to go beyond intent and articulate practical, time-bound pathways, backed by clear metrics and financial implications,” said Singh.

    Advertisement

    Don't Miss: Can Gold EGRs challenge Gold ETFs and sovereign gold bonds?

      Greenwashing refers to misleading investors or consumers by overstating environmental or sustainability credentials.

      According to Singh, the journey will not be without its challenges, in particular, the fundamental tension between profitability and sustainability.

      The short-term gains rewarded by the market are more visible, and the long-term climate risk is underpriced. A more nuanced understanding of value needs to be developed.

      On the pushback happening in Western markets, Singh said that political headwinds in some jurisdictions are real and political shifts do not make climate risk disappear.

      “A company exposed to water scarcity or carbon pricing faces those risks regardless of regulatory mandates. Investor-led pressure will therefore continue to sustain the momentum for voluntary sustainability disclosures, even in the rollback or relaxation of regulatory mandates. That pressure isn’t going away. As we look to the future, several themes are likely to shape the sustainability landscape,” he further said.

      Advertisement

      He says that there is an increasing connection between financial and sustainability reporting.

      "This shift recognises the interlinkage between the financial risks a company faces from climate change and the impact that it creates for the planet. Integration of these perspectives will enable a better understanding of the risks and opportunities faced by a company," he added.

      Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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