Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)

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Regulatory Identification and Governance Path of “Greenwashing” Behavior: Policy Implications Based on the Comparison of ESG Fund Holdings between China and the United States

Authors
Ziqing Yang1, *
1Business School, Royal Melbourne Institute of Technology University, 124 La Trobe Street, Melbourne, VIC, 3000, Singapore
*Corresponding author. Email: s4157685@student.rmit.edu.au
Corresponding Author
Ziqing Yang
Available Online 18 June 2026.
DOI
10.2991/978-2-38476-585-0_55How to use a DOI?
Keywords
Greenwashing; ESG rating divergence; ESG funds
Abstract

ESG (Environmental, Social, and Governance) ratings are widely used by investors to assess firms’ sustainability performance. However, significant discrepancies among ESG rating agencies raise concerns about the reliability and potential misuse of these ratings. This paper examines whether divergence in ESG ratings is associated with greenwashing behavior by firms. Using a global sample, the study finds that firms with greater ESG rating divergence are more likely to engage in symbolic ESG disclosures, such as boilerplate language, and are less likely to make substantial improvements in their actual ESG performance. The association is stronger among firms with high media coverage and low analyst following, suggesting that information asymmetry may facilitate greenwashing practices. These findings highlight the risks posed by inconsistent ESG evaluations and emphasize the need for standardized ESG metrics and more rigorous scrutiny of corporate ESG disclosures. Improving transparency and comparability in ESG assessments is critical for enhancing the integrity and effectiveness of sustainable investing practices.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
18 June 2026
ISBN
978-2-38476-585-0
ISSN
2352-5428
DOI
10.2991/978-2-38476-585-0_55How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ziqing Yang
PY  - 2026
DA  - 2026/06/18
TI  - Regulatory Identification and Governance Path of “Greenwashing” Behavior: Policy Implications Based on the Comparison of ESG Fund Holdings between China and the United States
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 489
EP  - 501
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_55
DO  - 10.2991/978-2-38476-585-0_55
ID  - Yang2026
ER  -