Forensic Accounting Approaches to Detecting and Preventing Greenwashing and Data Manipulation in ESG Reporting

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a novel framework combining forensic accounting with advanced technologies for detecting ESG fraud.

🏢実務担当者:Offers actionable methods (blockchain, AI, satellite) to strengthen internal controls and verification processes.

🏛政策担当者:Supports arguments for mandatory third-party verification and standardized metrics to curb greenwashing.

The rapid rise of environmental, social, and governance (ESG) investing, , driven by regulations like the EUs Sustainable Finance Disclosure Regulation (SFDR) and the International Sustainability Standards Board (ISSB) standards, has intensified corporate greenwashing through selective disclosure and data manipulation. This study examines the mechanisms underlying ESG reporting misconduct, including exaggerated sustainability claims and supply chain opacity, and proposes forensic accounting as a countermeasure. To address these challenges, it proposes forensic accounting as an effective countermeasure. A cross-sector analysis further reveals the widespread exploitation of regulatory ambiguities, with energy firms. For example, inflating renewable use while offloading emissions. In light of these findings, it introduces a multidimensional verification framework that integrates blockchain traceability, AI-driven semantic analysis, and satellite monitoring, collectively enhancing the ability to detect inconsistencies in ESG disclosures. The results underscore the limits of traditional audits in detecting complex ESG fraud, thus highlighting the need for mandatory third-party verification, standardized disclosure metrics, and internationally coordinated regulatory enforcement. By integrating advanced technology with forensic methods, accountability is strengthened, and sustainability disclosure is transformed from performative compliance to evidence-based practice.