'Most employees assume greenwashing is common'
Employees across Australia lack faith in their employers' commitment to climate action, as a new study showed that most of them assume their organisations are "greenwashing."
"Greenwashing" refers to the practice where businesses use deceptive marketing or exaggerated claims to make it appear that they are environmentally friendly.
Most employees believe their organisations are guilty of this, with only 14% of employees in a new Curtin Centre for Applied Ethics (CCAE) report saying their own employer is making good progress on climate commitments.
In fact, 79% of employees believe greenwashing is common and 85% would only trust climate claims if disclosure was required by law and subject to penalties for misleading statements.
"Most employees assume greenwashing is common, and very few accept sustainability claims at face value," said Professor Astghik Mavisakalyan, a co-author of the report, in a statement.
"Employees are far more likely to trust climate claims that are independently audited or backed by mandatory disclosure requirements than claims that rely solely on self-reporting."
Climate action expectations
The findings come in the wake of employees' widespread expectations of corporate climate action.
Among the report's 2,048 respondents, 97% believe large Australian companies have a responsibility to address climate change. Some 76% also expect their own employer to take action.
However, just 57% of employees said their employer had made a public climate commitment, and only around 44% trusted self-reported claims or voluntary commitments.
"Employees are not questioning whether businesses should act on climate change. For most Australians, that question has already been settled," said Professor Anthony Langlois, CCAE director and co-author of the report, in a statement.
"The challenge for employers is credibility. Workers want to see evidence of real progress, not simply commitments or communications campaigns."
Langlois, who is also the Stan Perron Dean of Applied Ethics, said employees are ready to support corporate climate action, but are "unwilling to take it on trust."
"In an era shaped by what we describe as a polycrisis, where environmental, economic and social pressures increasingly overlap, organisations need to demonstrate not only that they are acting responsibly, but that they can prove it," he added.
Those who can prove it may gain an edge over other organisations, according to the findings.
"Climate performance is increasingly influencing workplace decisions," Mavisakalyan said.
"A substantial share of employees indicated they would accept lower pay to work for a company with strong, verified climate credentials, suggesting climate action is becoming part of how workers assess employers."
This comes as the study revealed that employees view climate action as a workplace issue, with most expecting climate change to affect their cost of living, health, jobs and security over the next two decades.
