RepRisk: Twice as many firms face biodiversity and greenwashing risks

New research from RepRisk reveals that the global share of companies linked to both greenwashing and biodiversity risks has doubled over the past five years – from 3% in 2021 to 6% in 2025.

• Biodiversity dominates the environmental risk landscape: 38% of all environmental risk incidents tracked by RepRisk in the past year involved biodiversity – followed by local pollution (33%) and waste (17%).
• Gatekeepers between capital and sustainability under scrutiny: 294 Banking and Financial Services firms were flagged for greenwashing risk in 2025 – a 19% rise from 248 the year before.
• Repeat behavior in some sectors: In aviation, seven in ten companies flagged for greenwashing in 2024 were flagged again in 2025.

ZURICH, Oct. 7, 2025 /PRNewswire/ -- New research from RepRisk, the world's most respected DaaS company for reputational risks and responsible business conduct, shows that the global share of companies linked to both greenwashing and biodiversity risks has doubled over the past five years – from 3% in 2021 to 6% in 2025. RepRisk's fourth annual report on greenwashing – focusing on the link between greenwashing and biodiversity risks – indicates that rising awareness of nature-related risks and the adoption of "nature positive" strategies are increasing pressure on companies to demonstrate progress, which, at times, results in claims that are overstated, vague, or misleading.

"As biodiversity rises on board agendas, so does public scrutiny – and the price of greenwashing is paid in reputation and revenue," comments Philipp Aeby, CEO and Co-founder at RepRisk. He continues, "Greenwashing feeds on corporate narratives, so transparency demands data beyond company claims to ensure better performance and peace of mind."

RepRisk data shows that biodiversity risk exposure has consistently ranked among the top environmental issues over the past five years. In 2025, it accounted for 38% of flagged issues, ahead of local pollution (33%) and waste (17%).

While the banking, asset management, and financial services sector have a limited direct impact on biodiversity, they remain exposed to biodiversity and greenwashing risks due to its notable enabling role through financing and investment decisions. In 2025, 294 companies across the sector were flagged for greenwashing risk – a 19% increase from 248 the previous year.

The data in the figure above highlights diverging regional trends: while the EU has seen a steady decline in greenwashing risk since 2023, both the US and UK have experienced notable increases over the past year. In the US, greenwashing risk exposure increased to more than 4% in 2023, eased slightly in 2024, and climbed again in 2025 – underscoring persistent challenges despite heightened scrutiny. The UK follows a similar pattern, though at slightly lower levels, whereas the EU's downward trend suggests stronger compliance and enforcement measures.

Greenwashing can be a recurring feature of business conduct. Airlines illustrate this persistence: nearly seven in ten companies in the sector flagged for greenwashing risk in 2024 were flagged again in 2025, find the graphic in the report.

Notes to Editor

• To ensure the most up-to-date data, our 2025 report uses a consistent timeframe of July 1 to June 30 for all years from 2020 through 2025.
• Analyzing 2,500,000+ documents in 23 languages daily from 150,000+ public sources and stakeholders, RepRisk adopts a risk-based, outside-in approach – drawing exclusively from external public sources and intentionally excluding company self-disclosures. By excluding company self-disclosures in its data generation, RepRisk illuminates business conduct risks that could otherwise be obscured and could materialize into adverse impacts. Discover more in RepRisk's transparent, rule-based methodology.
• RepRisk's core research scope is comprised of 28 Business conduct issues that are broad, comprehensive, and mutually exclusive. RepRisk captures greenwashing through the intersection of two issue groups: any environmental issue and Misleading communication. As of 2025, RepRisk provides now 80 Topic tags, with six new additions – featuring dedicated tags for Greenwashing and Social washing, as well as Artificial intelligence, Deforestation, Ecocide, and Mercury.

About RepRisk

RepRisk is the world's most respected Data as a Service (DaaS) company for reputational risks and responsible business conduct. Since 2007, 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
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SOURCE RepRisk