Sustainable finance, biodiversity, and greenwashing: how contested values, metrics, and causation facilitate information distortion, information omission, and information pollution

Abstract

Biodiversity finance aims to support ecosystem and habitat preservation but faces significant challenges of greenwashing. This article critically examines the specific difficulties in addressing greenwashing within biodiversity finance. Through a critical interpretative review of recent theoretical and empirical studies, the article shows how the contested value of biodiversity, its diverse measurement methodologies, and the debated causal impacts of biodiversity finance create opportunities for greenwashing. These challenges are not general issues of sustainable finance but are tied to the specific aspects of biodiversity finance. The article highlights the need for tailor-made policy and regulatory frameworks to effectively mitigate greenwashing in biodiversity finance. Pinpointing the specific avenues through which greenwashing can occur, this critical interpretative review contributes to the literature by presenting a conceptual foundational framework for addressing greenwashing risks in biodiversity finance.