· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Conversation or enjoy below:
🗞️ Driving the news: Canadian companies are increasingly using social media platforms, such as X (formerly Twitter), to highlight their ESG commitments
• However, a study finds that these efforts fail to translate into financial gains or investor confidence
• The research suggests many firms are engaging in "greenwashing," projecting eco-friendly images without substantial actions to back their claims
🔭 The context: The study analyzed ESG-related social media activity by 185 Canadian firms from the S&P/TSX Composite Index between 2015 and 2022
• ESG-related posts increased from 2% of tweets in 2016 to over 8% in 2022, with heavy polluters like energy and industrial firms leading the activity
• Despite this, no meaningful association was found between ESG messaging and reductions in greenhouse gas emissions
🌍 Why it matters for the planet: Greenwashing undermines trust in corporate ESG initiatives and can erode progress toward genuine environmental and social goals
• Investors and stakeholders increasingly demand measurable actions rather than superficial branding
⏭️ What's next: Companies relying on ESG-related social media content without authentic action risk losing credibility
• To rebuild trust, firms must align their messaging with transparent and verifiable sustainability efforts
💬 One quote: “Words are not enough to impact capital providers if they are not supported by actions,” – Dhruv Baswal, PhD Candidate, Queen’s University
📈 One stat: By 2022, nearly 80% of Canadian S&P/TSX Composite Index firms had active Twitter accounts, up from less than 10% in 2008
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