The number of companies associated with greenwashing has decreased by 12 percent across all industries compared to last year. This marks the first decline in six years.

The data indicates a significant shift in corporate behavior, according to the study published on Wednesday by Zurich-based company Reprisk.

61 Cases in Switzerland

However, Switzerland is an exception. The number of companies involved in greenwashing continues to rise. In 2024, 61 Swiss companies were implicated in greenwashing, a 17.3 percent increase compared to 2023, marking the highest rise among the 13 markets analyzed.

The overall downward trend is likely a result of stricter regulatory measures. Companies are engaging in less greenwashing due to fear of backlash from stakeholders—particularly consumers, investors, and regulatory bodies.

Severe Cases on the Rise

Despite the general decline, there has been a global increase in severe greenwashing cases, up 30 percent. In Switzerland, the number of severe cases rose by 50 percent compared to the previous year. The recidivism rate for greenwashing worldwide stood at 30 percent, while Swiss companies had a rate of 23.4 percent.

«Stakeholders are more aware of the risks of greenwashing than ever before,» says Reprisk-CEO and co-founder Philipp Aeby. «While regulators have successfully implemented laws to prevent greenwashing, the risk will evolve with the emergence of new forms, exposing companies to reputational damage that could affect their bottom line.»

Decline in the Bankin and Financial Service Sector

A positive trend was noted in the banking and financial services sector. While the industry saw a 70 percent increase in climate-related greenwashing from 2022 to 2023—a trend also highlighted in a summer report by the European Banking Authority—the new data from Reprisk indicates that incidents in this sector have decreased by 20 percent globally from 2023 to 2024. The recidivism rate in this sector stands at 36 percent.

Reprisk describes itself as a global leader in ESG data technology. The incidents recorded in the study are evaluated based on two criteria: misleading communication and an environmental issue such as local pollution or impacts on ecosystems and biodiversity.