Green finance and greenwashing: charting a sustainable path forward

Purpose – The purpose of this paper is to examine the potential relationship between green finance and greenwashing to rationalize resource allocation better. Additionally, it explores the interconnections among various subgroups of green finance products (GFPs) and identifies any overlooked or underrepresented subgroups. Design/methodology/approach – This paper uses a mixed-method exploratory sequential design. Initially, the authors collected a sample of 313 relevant documents. Thematic analysis and hierarchical coding were then performed using NVivo software to uncover correlations between various nodes and address our research questions. Additionally, a word cloud analysis was conducted to assess the potential research value of stakeholders as moderating variables. Following this, the role of stakeholders was reevaluated, leading to the selection of 58 samples for separate content analysis. Findings – First, there is a negative relationship between green finance and greenwashing. Second, a negative relationship is observed between GFPs and greenwashing. The authors’ correlation coefficient analysis suggests that environmental, social and governance funds, as a non-mainstream research focus within GFPs, deserve further in-depth investigation. Originality/value – While a significant portion of the existing literature focuses on the relationship between green bonds and greenwashing, a noticeable gap exists regarding the broader spectrum of GFPs and their potential association with greenwashing. The lack of a direct connection between broader GFPs and greenwashing suggests that this area is underexplored in literature. This paper fills this gap by investigating the role of broader GFPs in either promoting or mitigating greenwashing.