From Greenwashing to Green Finance: Blockchain as a Catalyst for Transparency and Impact

Growing concerns about environmental deterioration and climate change have made industries move towards sustainability. Still, sustainability is hugely undermined, with many companies caught in greenwashing to deceive customers regarding their professed environmental commitments. This paper aims to investigate how blockchain technology can improve information transparency and authenticity in green finance, providing a potential for reducing risks related to incidents like greenwashing. This paper extensively reviews the current state-of-the-art literature and real-world cases on how blockchain helps in trustworthy data management, supply chain traceability, and monitoring environmental footprint. In addition, it explores the barriers and potentials of blockchain in green finance developments and provides suggestions for stakeholders to tap its transformative power.