CFA Institute Sustainable-Investing Question Answer
The biggest direct impact of greenwashing most likely relates to:
Labor strikes.
Greater regulation.
A loss of consumers' trust.
Greenwashing—misleading claims about a company's environmental efforts—directly leads to a loss of consumer trust (Option C).
Consumers become skeptical of sustainability claims, leading to brand damage and reduced sales.
Companies caught greenwashing (e.g., Volkswagen Dieselgate, H&M’s false sustainability claims) suffer reputational and financial losses.
Option A (Labor strikes) can occur due to ESG issues, but greenwashing itself does not directly trigger strikes.
Option B (Greater regulation) is a secondary consequence, but the direct impact is consumer trust erosion.
TESTED 01 Jan 2026
Copyright © 2014-2026 ACE4Sure. All Rights Reserved