Scholars urge policymakers to regulate green gatekeepers to reduce greenwashing.
A growing number of Americans want to purchase sustainable products and invest in environmentally responsible companies. Yet almost 60 percent of executives admit that their organizations are overstating their sustainability efforts.
Under these conditions, how can environmentally conscious consumers make informed choices?
According to three scholars, “green gatekeepers”—organizations that certify environmental claims about products and companies—could be the solution.
In a recent working paper, law professors Luca Enriques at Oxford University, Alessandro Romano at Bocconi University, and Andrew F. Tuch at Washington University School of Law contend that green gatekeepers can mitigate the information asymmetries between firms and consumers. They warn, however, that green gatekeepers face weaker reputational constraints than traditional gatekeepers, making them more likely to issue inaccurate certifications.
Enriques, Romano, and Tuch propose a regulatory framework to improve green gatekeepers’ accountability.
Learn about the paper here
