The OTM discusses the phenomenon of “competence greenwashing,” defining it as:
“Situations where organizations claim to have the capacity or structures to manage ESG issues, such as appointing sustainability officers or teams, but demonstrate no substantive policy, strategy, or outcomes to justify those claims.”
This description matches the scenario exactly—a firm setting up a sustainability office without implementing or reporting genuine ESG actions. The manual contrasts this with “greenhushing,” where companies downplay sustainability activities, and “scopewashing,” where emissions or ESG boundaries are misrepresented.
Thus, competence greenwashing refers to overstating institutional readiness or capability without execution, makingoption Cthe correct and verified answer.
????Reference:2021-Final-Book.pdf, Chapter 1 — Introduction to ESG; Section on ESG Misrepresentation and Greenwashing Types.
