Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

The term "greenwashing" specifically refers to the practice of making misleading claims about the environmental benefits of a product or service. This often involves companies presenting their products as more environmentally friendly than they actually are, creating a deceptive image that can mislead consumers into believing they are making sustainable choices.

This practice can undermine genuine efforts toward sustainability and causes confusion among consumers who strive to support environmentally responsible brands. Instead of providing true benefits for the environment, greenwashing can divert attention away from the harmful practices underlying a company's operations.

The other options describe positive attributes or practices related to environmental responsibility. Authentic marketing of eco-friendly products represents truthful communication about genuine environmental benefits. Reducing carbon footprint indicates actual efforts to lower greenhouse gas emissions. Transparently disclosing environmental impacts involves providing clear and honest information regarding a product's or service's effects on the environment. Each of these reflects responsible environmental practices, contrasting sharply with the deceptive nature of greenwashing.