Greenwashing Detection Market Size, Share, Opportunities, and Trends Report Segmented By Technology Type, Enterprise Size, End User, and Geography – Forecasts from 2025 to 2030

Description

Greenwashing Detection Market Size:

The greenwashing detection market is expected to grow steadily over the forecasted timeframe.

Greenwashing Detection Market Trends:

The market for greenwashing detection is growing at a steady rate. This is because the governments and consumers demand greater accountability and transparency in sustainability claims. This market comprises tools and regulatory frameworks aimed at identifying and monitoring environmental reports by companies. ESG investing and stricter reporting regulations have increased the demand for greenwashing detection solutions.

This market has components such as AI-powered analytics platforms, ESG assurance services, and third-party verification. Natural language processing (NLP) and machine learning are increasingly used to analyse corporate reports. ESG ratings agencies and sustainability data providers have a huge role in evaluating the credibility of environmental claims. The greenwashing detection market is expected to grow significantly due to the increasing importance of sustainability. Other factors, such as regulatory pressure and reputational risk management, are also leading to an increase in market growth. They have applications across sectors such as finance, energy, fashion, and consumer goods.

Greenwashing Detection Market Growth Drivers:

• Increasing Regulatory Pressure: One of the key drivers of the greenwashing detection market is increasing regulatory pressure. Governments and regulatory bodies worldwide are introducing stricter ESG disclosure requirements to combat misleading environmental claims. Frameworks like the EU’s CSRD, the U.S. SEC’s ESG fund rules, and the UK’s Green Claims Code are compelling companies to substantiate their sustainability statements with credible data. According to the RepRisk report 2024, there has been a decrease of 12% year-over-year in companies, but 30 per cent of the companies did greenwashing in both 2023 and 2024.
• Growing Investor and Consumer Demand for ESG Transparency: Another key driver of the greenwashing detection market is growing investor and consumer demand for ESG transparency. Investors and consumers are increasingly prioritising ethical and sustainable practices when making decisions. They demand greater transparency and accountability from companies regarding ESG performance. According to the Morgan Stanley survey 2024, more than half (57%) of respondents report that their interest in sustainable investing has increased over the past two years, reflecting a growing awareness of environmental and social issues. Additionally, 54% indicate plans to increase their allocations to sustainable investments within the next year.

Greenwashing Detection Market Segmentation Analysis by Technology Type:

• Artificial Intelligence: Artificial intelligence has a substantial share of the greenwashing detection market. It analyses vast volumes of ESG reports, corporate disclosures, and public communications, and AI helps detect inconsistencies, false claims, and data gaps. Its ability to process unstructured data and apply natural language processing makes it a powerful tool for enhancing transparency, regulatory compliance, and investor trust in sustainability reporting.
• Blockchain: Blockchain technology supports greenwashing detection by providing transparent and tamper-proof records of sustainability data, enhancing the credibility of environmental claims.
• Others: Other technologies, such as data analytics and traditional auditing methods, also contribute to identifying greenwashing by cross-referencing claims with verifiable data sources.

Greenwashing Detection Market Segmentation Analysis by Application:

• Financial Services: Financial services hold a significant share of the greenwashing detection market. There is an increase in demand and scrutiny by investors for transparency in ESG-labelled financial products. Asset managers and investment firms are under pressure to validate sustainability claims in portfolios, green bonds, and ESG funds.
• Consumer Goods & Retail: The consumer goods and retail sector is adopting greenwashing detection solutions to ensure the authenticity of eco-friendly product claims, driven by consumer demand for sustainable products.
• Energy & Power: The energy and power sector utilizes greenwashing detection to validate claims related to renewable energy and carbon neutrality, addressing regulatory and stakeholder expectations.
• Others: Other sectors, such as fashion and manufacturing, are increasingly adopting greenwashing detection tools to align with sustainability goals and avoid reputational risks.

Top Trends Shaping the Greenwashing Detection Market:

1. Stricter Regulatory Frameworks and Enforcement:

   Governments and regulatory bodies are increasingly codifying what constitutes greenwashing, with stricter rules for sustainability disclosures.

2. Rise of Third-Party Verification and ESG Auditing:

   There’s growing demand for independent ESG verification to combat inflated or unverifiable claims. Companies are increasingly turning to third-party ESG rating providers, auditors, and assurance firms.

3. Advanced Technologies for Detection:

   Advanced technologies such as AI, machine learning, and natural language processing are being deployed to scan corporate reports, marketing content, and product labels for inconsistencies or exaggerated claims.

Greenwashing Detection Market Growth Drivers vs. Challenges:

Drivers:

• Increasing Regulatory Pressure: One of the key drivers of the greenwashing detection market is increasing regulatory pressure. Governments and regulatory bodies worldwide are introducing stricter ESG disclosure requirements to combat misleading environmental claims. Frameworks like the EU’s CSRD, the U.S. SEC’s ESG fund rules, and the UK’s Green Claims Code are compelling companies to substantiate their sustainability statements with credible data. According to the RepRisk report 2024, there has been a decrease of 12% year-over-year in companies, but 30 per cent of the companies did greenwashing in both 2023 and 2024.
• Growing Investor and Consumer Demand for ESG Transparency: Another key driver of the greenwashing detection market is growing investor and consumer demand for ESG transparency. Investors and consumers are increasingly prioritising ethical and sustainable practices when making decisions. They demand greater transparency and accountability from companies regarding ESG performance. According to the Morgan Stanley survey 2024, more than half (57%) of respondents report that their interest in sustainable investing has increased over the past two years, reflecting a growing awareness of environmental and social issues. Additionally, 54% indicate plans to increase their allocations to sustainable investments within the next year.

Challenges:

• Lack of Standardisation: One major challenge in the greenwashing detection market is the lack of standardised ESG definitions and reporting frameworks across regions and industries. It is difficult for third-party audits to validate companies because of the different terminologies used in different regions, as well as in different companies. Advanced AI tools also find it difficult to validate data, as there is a difference in what qualifies as “green” or “sustainable.” This lack of standardisation hampers accurate detection. This also allows companies to exploit loopholes, undermining investor trust and slowing progress toward true ESG accountability.

Greenwashing Detection Market Regional Analysis:

• United States: In the U.S., the Securities and Exchange Commission (SEC) has stepped up efforts to address greenwashing, particularly in financial markets.
• Australia: Australia has become increasingly aggressive in identifying and penalising greenwashing, led by the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).
• European Union: The European Union has emerged as a global leader in greenwashing detection through its comprehensive regulatory framework. Initiatives like the Corporate Sustainability Reporting Directive (CSRD), the Sustainable Finance Disclosure Regulation (SFDR), and the EU Taxonomy have set high standards for environmental claims.
• United Kingdom: The UK has developed a robust framework to tackle greenwashing, particularly in the wake of Brexit. The Competition and Markets Authority (CMA) introduced the Green Claims Code.

Greenwashing Detection Market Competitive Landscape:

The market has many notable players, including RepRisk AG, Morningstar, Inc., MSCI, Greenly, Clarity AI, and EcoVadis, among others.

• Reprisk Greenwashing Detection: Greenwashing can be identified by examining the overlap of two ESG dimensions, particularly when a company engages in misleading environmental communication. Incidents are flagged when firms present themselves as environmentally responsible, while other ESG factors, such as governance or social practices, reveal inconsistencies or a lack of credibility in their claims.

Greenwashing Detection Market Scope:

The Greenwashing Detection Market is analyzed into the following segments:

By Technology Type

• Artificial Intelligence
• Blockchain
• Others

By Enterprise Size

• Large Enterprises
• Small Enterprises

By End User

• Financial Services
• Consumer Goods & Retail
• Energy & Power
• Others

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Others

Our Best-Performing Industry Reports:

• ESG Analytics Market
• Sustainability Reporting Market
• Corporate Social Responsibility Market

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. GREENWASHING DETECTION MARKET BY TECHNOLOGY TYPE

5.1. Introduction

5.2. Artificial Intelligence

5.3. Blockchain

5.4. Others

6. GREENWASHING DETECTION MARKET BY ENTERPRISE SIZE

6.1. Introduction

6.2. Large Enterprises

6.3. Small Enterprises

7. GREENWASHING DETECTION MARKET BY END-USER

7.1. Introduction

7.2. Financial Services

7.3. Consumer Goods & Retail

7.4. Energy & Power

7.5. Others

8. GREENWASHING DETECTION MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. United Kingdom

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Spain

8.4.6. Others

8.5. Middle East & Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Thailand

8.6.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. RepRisk AG

10.2. Morningstar, Inc.

10.3. MSCI

10.4. Greenly

10.5. Clarity AI

10.6. EcoVadis

11. APPENDIX

11.1. Currency

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology

11.6. Abbreviations

Companies Profiled

RepRisk AG.

Morningstar, Inc.

MSCI

Greenly

Clarity AI

EcoVadis

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