The Rise of Greenwashing and Bluewashing in ESG Practices In the race to appear responsible and future – oriented, many global corporations have embraced the language of sustainability and ethics. However, as ESG principles become mainstream, growing evidence suggests that some companies are using them more as a marketing shield than a meaningful transformation tool. Subtle forms of greenwashing and bluewashing now shadow corporate sustainability reports, undermining the credibility of even well – intentioned initiatives. This issue has become increasingly visible within the renewable energy transition. While industries promise a cleaner future through solar, wind, and battery technologies, the social and environmental costs buried in their supply chains tell another story. Mining for critical minerals like lithium, cobalt, and mica — essential for electric vehicles and renewable infrastructure — often occurs under unsafe conditions, with weak labor protections and reported cases of child and forced labor. These realities expose a troubling contradiction: the pursuit of “clean” energy built upon unclean human practices. At the same time, human rights and climate change have become inseparable. The United Nations’ declaration of a universal right to a clean, healthy, and sustainable environment reinforces this link. [I] Yet, despite public commitments, some corporations continue to prioritize profit and short – term growth over tangible social or environmental progress. [II] Their glossy reports emphasize future goals but omit current accountability, eroding public trust. Regulators are beginning to respond. Financial authorities in several countries — including Australia — have initiated penalties and corrective disclosures against misleading ESG claims. [III] However, enforcement alone cannot restore confidence. Businesses must align their climate ambitions with transparent data, ethical supply chain management, and genuine community engagement. Ultimately, both environmental and social integrity must stand at the core of the global energy transition. Without honest implementation, the gap between corporate statements and real – world impact will only widen. [IV] To build a truly sustainable future, companies must replace symbolic gestures with measurable actions that respect both the planet and the people who sustain it. [Adapted from https://www.unsw.edu.au/ and https://www.forbes.com/] Question 31: Where in the passage does the following sentence best fit? These early actions mark a shift toward holding companies legally accountable for false sustainability promises. A. [II] B. [IV] C. [III] D. [I] Question 32: Which of the following is NOT mentioned in the passage? A. Some companies hide social and environmental costs in renewable energy supply chains. B. Child and forced labor exist in the mining of critical minerals like lithium and cobalt. C. Governments have already fully eliminated greenwashing in corporate reports. D. Financial authorities in several countries have initiated penalties for misleading ESG claims. Question 33: The phrase “tell another story” in paragraph 1 could best be replaced by __________. A. paint a different picture B. add more details C. polish up the report D. gloss over the details Question 34: In paragraph 2, the pronoun “their” refers to __________. A. renewable energy industries B. United Nations C. global corporations in general D. regulatory authorities Question 35: The word "tangible" in paragraph 3 is OPPOSITE in meaning to __________. A. real B. obvious C. abstract D. clear Question 36: Which of the following best summarizes the second paragraph of the passage? A. The renewable energy sector successfully reduces its environmental impact by substituting fossil fuels with cleaner technologies like solar, wind, and new advanced batteries. B. The mining of essential minerals for green technology is proving unsustainable due to the absence of clear regulations on social and environmental costs. C. The transition to clean energy is fraught with irony because the production of its core components is based on socially irresponsible and dangerous human practices. D. The current focus on lithium and cobalt mining has shifted the environmental damage from pollution to the widespread destruction of critical natural habitats globally. Question 37: It is TRUE that the current response from regulators to greenwashing is characterized by which of the following actions? A. They have managed to completely stop the creation of misleading ESG claims by companies through consistent enforcement and swift legal action. B. Authorities in certain countries have started imposing fines and requesting public corrections from companies making false sustainability statements. C. Financial authorities are restoring public confidence by relying solely on enforcement measures without requiring any further data transparency from corporations. D. Regulators are primarily focusing on aligning corporate climate ambitions with community engagement rather than implementing immediate legal penalties. Question 38: The statement “This issue has become increasingly visible within the renewable energy transition” can be best understood as: A. The inherent complexities and difficulties associated with rapidly adopting renewable energy sources are becoming widely recognized globally. B. The problems concerning deceptive sustainability claims are particularly apparent when examining companies shifting to clean energy. C. There is a general trend that more investments are shifting toward transitioning into cleaner, more sustainable energy technologies worldwide. D. The contradictions inherent in the energy transition demonstrate that achieving net – zero emissions is ultimately not a realistic goal. Question 39: Which of the following can most likely be inferred from the passage? A. The growing mainstream acceptance of ESG principles has unintentionally increased the incentive for corporations to engage in deceptive reporting tactics. B. Regulators in countries outside of Australia have not yet initiated any legal penalties against corporations for making misleading ESG claims. C. Companies that focus on ethical supply chain management are inherently more profitable than those prioritizing short – term financial gains. D. The United Nations’ declaration of a universal right to a healthy environment is legally binding for all global corporations immediately. Question 40: Which of the following best summarises the passage? A. Although regulators are starting to hold corporations accountable for misleading claims, the problem of greenwashing persists because companies are prioritizing profit over ethical sourcing of critical minerals. B. The transition to renewable energy is failing due to the high social and environmental costs associated with mining lithium and cobalt, necessitating new global agreements. C. The widespread adoption of ESG has paradoxically led to the rise of deceptive reporting practices, necessitating a fundamental shift from symbolic gestures to demonstrable social and environmental integrity in corporate actions. D. The United Nations and global financial authorities must work together to create a singular, legally enforceable standard to rebuild public trust and ensure the success of climate ambitions. |