The Muamalat Newsletter Vol. 1 2024

FEM eNewsletter | June 2024 39 50 Shades of Greenwashing: Redefining Sustainability Reporting Nurul Nazlia Jamil Faculty of Economics and Muamalat Universiti Sains Islam Malaysia only adopt but also accurately disclose sustainable practices is paramount, the threat of greenwashing looms large. This threat is compounded by the discerning eye of impact investors, who are steering clear of companies that fail to demonstrate tangible, positive environmental outcomes. Greenwashing, an increasingly recognised deceptive marketing strategy, involves businesses projecting a misleading image of environmental friendliness (Free et al., 2024). This tactic, aimed at portraying companies as more eco-conscious than they actually are, exploits the growing consumer demand for sustainable options. By emphasising a product’s green attributes without acknowledging its broader environmental impact, making vague or unverifiable claims about eco-friendliness, or prioritising the advertisement of green initiatives over the implementation of substantial sustainable Introduction Our relentless pursuit of economic growth and industrial progress has exacted a heavy toll on the natural world, pushing ecosystems to the brink of collapse and disrupting the delicate balance essential for all life. As our planet grapples with increasingly dire environmental challenges, the importance of adopting sustainable practices among consumers and companies, and fostering new behaviors, has become more crucial than ever. Yet, amidst this surge in eco- consciousness, one cannot help but wonder: is sustainability becoming more of a fashion statement rather than a genuine commitment to doing business responsibly? In the evolving landscape of corporate sustainability, where the imperative to not Ersa Tri Wahyuni Faculty of Economics and Business Universitas Padjajaran