Stakeholders, investors and companies around the world are paying much closer attention to ESG (Environmental, Social and Governance) reporting. With increased focus on sustainability, corporate social responsibility and regulatory practices it has become imperative for the companies to maintain transparent ESG reporting to ensure strong stakeholder relations. But, when it comes to some companies, they engage in greenwashing—as in exaggerating or misrepresenting their environmental actions in an effort to appear more environmentally friendly than they really are. Given that ESG disclosures are an essential part of corporate transparency and accountability, there is a need for standardised approaches to assess the discrepencies between reported performance and actual outcome. This paper explores the changing world of ESG reporting, particularly increasing issues with greenwashing in corporate sustainability. Examining existing ESG frameworks and reporting standards, it illuminates the bewildering heterogeneity in ESG disclosure, amidst greater scrutiny of reliable, value-add ESG disclosure. The paper further explores the ramifications of greenwashing and summarizes regulatory frameworks implemented globally to address it. Lastly, this paper calls for more refined and standardized reporting guidelines in order to more effectively reduce the risk of greenwashing and thereby enhance the credibility of ESG disclosures towards actually promoting sustainable practices.