This article aims to be an original contribution to identify the external factors that influence greenwashing practices in Brazilian companies.
We used both symmetric (data panel regression) and asymmetric (fuzzy set qualitative comparative analysis) approaches to assess which institutional factors influence greenwashing reporting. We analyzed 71 listed Brazilian companies from 2018 to 2021.
The results indicates that the presence of a sustainability committee and classification in an environmentally risky sector positively influence greenwashing practices. The findings showed that companies can be influenced to align their communications with institutional expectations and norms, even if this does not lead to meaningful sustainable practices.
The article makes an original contribution to the literature by demonstrating that, in an emerging country, external factors have driven companies to engage in greenwashing practices. The study suggests restructuring sustainability committees and recommends reassessing current environmental legislation to evaluate its effectiveness in combating greenwashing and ensuring transparent communication by companies in Brazil.
