RepRisk reports 28% rise in greenwashing risk as scrutiny shifts toward the energy transition

RepRisk's fifth annual Greenwashing Report finds that financial institutions remain at the center of greenwashing risk. In 2026, Financial Services recorded a 40% year-on-year rise in the number of companies linked to greenwashing, while Banks recorded a 23% increase.

• Transition-linked sectors overtake Oil and Gas: Alternative Energy, Industrial Metals, Mining, Software and Computer Services, and Utilities together accounted for 29% of greenwashing-related environmental issue linkages in 2026, up from 18% in 2022, while the share associated with Oil and Gas fell from 17% to 12%.
• Financial institutions remain at the center of greenwashing risk: Financial Services and Banks together represented one-fifth of all sector linkages among greenwashing-linked companies in 2026, with Financial Services recording a 40% and Banks a 23% year-on-year increase.
• Biodiversity surpasses climate for the first time: In 2026, greenwashing risk concerning ecosystems and biodiversity overtook climate change and emissions for the first time in five years.

ZURICH, Oct. 6, 2026 /PRNewswire/ -- New research from RepRisk, the world's most respected Data as a Service company for business conduct risks, shows that greenwashing risk is rising again and shifting toward the companies, technologies, projects, and financial institutions at the center of the energy transition.

RepRisk's fifth annual Greenwashing Report found that the number of companies linked to greenwashing rose for a second consecutive year, reaching 1,594 in the year to June 2026, a 28% year-on-year increase. This follows a 12% decline in 2024. Over the five-year period, greenwashing risk incidents increased by 112%.

This renewed rise is accompanied by a shift from traditional high-emitting industries toward transition-linked sectors. Between 2022 and 2026, the combined share associated with Alternative Energy, Industrial Metals, Mining, Software and Computer Services, and Utilities increased from 18% to 29%, while the share associated with Oil and Gas fell from 17% to 12%.

The transition to a low-carbon economy is creating a new greenwashing risk landscape. As capital flows toward renewable energy, transition minerals, low-carbon infrastructure, and other climate solutions, scrutiny is increasingly extending beyond traditional high-emitting sectors to the activities intended to support the transition itself.

"The transition depends on informed capital allocation," said Philipp Aeby, CEO and Co-founder of RepRisk. "As investments continue to accelerate, banks, asset managers, and asset owners must be able to cut through greenwashing. High-quality data that is relevant, accurate, and auditable enables financial institutions to identify emerging risks and ensure that capital supports credible transition efforts and long-term value creation."

Financial institutions sit at the center of this changing landscape. In 2026, Financial Services and Banks together accounted for one-fifth of all sector linkages among companies linked to greenwashing. Financial Services ranked as the most exposed sector, with 305 companies, up 40% year on year, while 86 Banks were linked to greenwashing, an increase of 23%. For financial institutions, greenwashing risk can arise both from their own activities and from the companies and projects they finance, invest in, or underwrite.

The environmental issues linked to greenwashing risk are also shifting. Between 2024 and 2026, greenwashing linkages concerning ecosystems and biodiversity nearly doubled from 162 to 300, while those concerning climate change and emissions remained broadly flat, edging up from 272 to 275. In 2026, biodiversity overtook climate as the leading environmental issue linked to greenwashing risk for the first time in five years.

Notes to Editors

• The 2026 report examines five annual periods, each running from July 1 to June 30. "2026" refers to the period from July 1, 2025, to June 30, 2026.
• A linkage represents a connection between one company and one Business Conduct Issue. As a company may be linked to multiple Issues, the number of linkages exceeds the number of companies.
• RepRisk defines greenwashing as environment-related statements, communications, or actions that do not clearly and fairly reflect the environmental performance of an entity, product, or service. Such communication may involve omitted, false, or deceptive information and may occur intentionally or unintentionally.
• RepRisk captures greenwashing through its dedicated Greenwashing Topic Tag. The tag was introduced in 2025 and enables more granular analysis than the methodology used for editions published before 2025. Comparisons spanning the methodological change should therefore be interpreted with this distinction in mind.
• Transition-linked sectors provide the infrastructure and materials on which the transition to a low-carbon economy depends. The grouping comprises Alternative Energy, Industrial Metals, Mining, Software and Computer Services, and Utilities. Software and Computer Services includes AI companies and data centers whose growing energy demands are reshaping electricity grids and whose claims regarding renewable energy use and carbon-free operations have come under increasing scrutiny.
• RepRisk's absolute incident counts reflect both reported developments and the continued expansion of its screening scope, including additional sources, languages, and companies. The report therefore also examines relative shares and distributions to provide a complementary view of how greenwashing risk is evolving.

About RepRisk 

RepRisk is the world's most respected Data as a Service (DaaS) company for reputational risks and responsible business conduct. Since 2006, RepRisk's data has been trusted by the world's leading banks, investment managers, Fortune 500 companies, sovereign wealth funds, and organizations such as the OECD and UN. Combining advanced AI with deep human expertise, and a proven methodology at the core, RepRisk's solutions bring peace of mind, enabling clients to 'know more, be sure, and act faster'. Our pioneering solutions help to strengthen due diligence processes across business conduct topics, such as biodiversity, deforestation, human rights, and corruption, empowering clients to identify, monitor, and mitigate reputational, compliance, and financial risks. Headquartered in Zurich, and with offices in Toronto, New York, London, Berlin, Manila, and Tokyo, we stay close to clients and bring an independent lens to the industry. United by our shared belief in the power of data, our 400 people are proud to be setting the global standard for business conduct data and driving positive change through transparency. Visit us at reprisk.com and follow us on LinkedIn.

Contact 

Mathias Fürer 
+41 41 552 30 01 
[email protected] 

SOURCE RepRisk