Greenwashing or Genuine Change?

Abstract

This thesis investigates the effectiveness of CSRD in preventing greenwashing in corporate sustainability reporting. Amid growing pressure for credible and transparent ESG disclosures, greenwashing (misleading environmental claims) has become a significant barrier to sustainable transformation. The CSRD, as the EU’s most ambitious regulation on non-financial reporting to date, aims to increase transparency, accountability, and comparability across companies.Drawing on institutional theory, stakeholder theory, signaling theory, and the concept of regulatory capture, the thesis explores whether companies respond to the CSRD with genuine behavioral changes or primarily symbolic compliance. Through a theory-testing research design and cross-sectoral case studies of BP (energy), A.P. Møller-Mærsk (shipping), and Carlsberg (agri-food), the thesis analyses sustainability reports and ESG ratings to detect signs of strategic reporting or substantive transformation.The analysis finds that while the CSRD contributes to greater standardization and potentially improves transparency, it also leaves room for selective disclosure and ceremonial compliance. Companies may adopt the formal language and structures required by the directive without enacting substantial operational change. Notably, the measurement and disclosure of Scope 3 emissions remain highly inconsistent across sectors, often based on rough estimates or excluded entirely. The lack of reliable methods of emission-measure, combined with flexibility in materiality assessment and limited audit scrutiny, allows greenwashing to persist under a facade of compliance. The thesis concludes that while the CSRD is a critical regulatory step forward, its success in reducing greenwashing depends on enforcement, stakeholder engagement, and the ability to close loopholes that permit strategic communication. Future regulatory revisions, such as the Omnibus Initiative, must balance administrative feasibility with the imperative for meaningful accountability; especially for smaller companies operating in complex supply chains.