ESG Fraud

As sustainability and ESG performance have become influential in investment decisions and corporate valuations, the risk of fraudulent misrepresentation has grown. ESG fraud occurs when environmental, social, or governance claims are intentionally exaggerated, fabricated, or concealed to gain financial, reputational, or regulatory advantage. Understanding the dynamics of ESG fraud is critical for assessing how oversight, verification mechanisms, and legal frameworks are adapting to ensure the credibility and integrity of sustainability-driven markets.