Incidents of biodiversity-linked greenwashing have tripled in 2025 compared to last year, according to data from ESG data science firm RepRisk.
The report – Where biodiversity risks grow, greenwashing follows – also revealed that the share of companies linked to both biodiversity and greenwashing risks has doubled over the past five years, rising from 3% in 2021 to 6% in 2025.
The rise in biodiversity-linked greenwashing poses serious risks to both the natural and financial worlds, the report warned, adding that misleading claims both undermine trust and can distort capital flows, misprice sustainability risk, and expose companies to regulatory and reputational risk.
Investors and regulators are growing less tolerant of vague “nature-positive” language, focusing more on verifiable outcomes, RepRisk said.
Furthermore, companies that fail to align biodiversity claims with tangible action could risk losing investor confidence and may face steep financial penalties.
Nicole Streuli-Fürst, president of RepRisk, said that a sustainable, nature-positive approach is being challenged by short-term pressures in some regions.
“In the face of that challenge, investors and consumers are looking for transparency they can trust. Where claims and pledges are not aligned with sustainable actions, it’s not only reputations that are at stake. The long-term financial and operational risks associated with greenwashing and biodiversity loss are increasingly deterring investors, partners, and customers,” said Streuli-Fürst.
RepRisk also warned that greenwashing is becoming a repeat offence in some sectors, which suggests that companies are failing to integrate genuine accountability into their governance structures.
RepRisk collated the data by analysing and tagging public information from media, NGOs, government sources, and other third-party reports to identify and assess ESG-related risk incidents. The figures presented in the report are global, covering companies and incidents worldwide.
COP30 and the road ahead
The World Economic Forum ranks biodiversity loss and ecosystem collapse as the second most severe long-term threat to economic growth.
The report comes ahead of COP30, the 2025 UN Climate Change Conference in Brazil, where biodiversity will be high on the agenda.
Regional divergence and regulatory enforcement are complicating an already opaque landscape, the report said.
As the EU’s stricter oversight, like the upcoming EU Deforestation Regulation, appears to be driving down greenwashing cases, the US and UK have seen an increase in cases due to lagging compliance frameworks, despite increased regulatory scrutiny, the report added.
Looking ahead, RepRisk has urged firms to embed transparency and accountability into their governance approach to ensure that biodiversity and sustainability claims are backed by verifiable data and measurable outcomes.
Furthermore, the report warns that tougher regulations like the upcoming EU Deforestation Regulation and the UK’s Digital Markets, Competition and Consumers Act will see steep fines introduced (up to 10% of annual turnover for misleading claims), meaning that compliance is no longer optional.
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