In this episode, David Petrisky, director of professional standards at the IIA, as he dives into the hot topic of greenwashing with Edith Wong, managing director at FTI Consulting, and Brian Wilmot, attorney at Paul Hastings. They unpack the challenges of navigating environmental claims, share eye-opening cases, and offer practical tips for auditors tackling greenwashing and other ESG-related risks.

Guests:Edith Wong, Forensic Accountant in Investigations and Compliance, FTI Consulting Brian Wilmot, Compliance and Regulatory Counseling and Investigations and White Collar Defense Practices Attorney, Paul Hastings LLP

Host:

David Petrisky, Dir. Professional Standards, The IIA

Key Points:

• Introduction to Greenwashing (00:00:02 - 00:00:42)
• Definition and Legal Context of Greenwashing (00:00:42 - 00:01:20)
• Examples and Cases of Greenwashing (00:02:23 - 00:03:30)
• Challenges in Environmental Claims and Reporting (00:01:45 - 00:02:23, 00:03:38 - 00:04:50)
• Regulatory and Litigation Activity (00:01:45 - 00:02:23, 00:05:09 - 00:06:27)
• Non-Financial Reporting and Corporate Communications (00:06:27 - 00:07:19)
• Global Frameworks and Standards (00:09:07 - 00:11:02)
• Role of Internal Auditors in Addressing Greenwashing (00:11:07 - 00:12:32, 00:17:07 - 00:18:47)
• Preventative Practices and Governance Structures (00:13:06 - 00:15:09)
• Industry-Specific Concerns and Risks (00:15:21 - 00:16:55)

• TerraChoice’s Seven Sins of Greenwashing
• Federal Trade Commission’s Green Guides
• Global Reporting Initiative (GRI)
• Sustainability Accounting Standards Board (SASB)