From Promise to Proof: GreenBrew Malaysia’s Sustainability Challenge

Abstract

This study examines the growing concerns surrounding corporate sustainability governance, particularly the increasing prevalence of greenwashing, which raises doubts about corporate transparency and accountability. Many companies promote sustainability initiatives without independent verification, creating uncertainty about the credibility of their environmental commitments. This study focuses on GreenBrew Malaysia, a company that positioned itself as an environmentally responsible brand but later faced scrutiny over misleading sustainability claims. This study investigates the impact of unverified environmental statements on consumer trust, corporate credibility, and regulatory oversight. Applying the Corporate Sustainability Crisis Management (CSCM) Model, this study evaluates how GreenBrew Malaysia responded to the controversy and the broader implications for sustainability governance. This study adopts a qualitative case study methodology, drawing from secondary data, including regulatory reports, industry analyses, media investigations, and academic literature. This study also incorporates expert interviews with professionals in sustainability governance, regulatory enforcement, and Environmental, Social and Governance (ESG) compliance to provide deeper insights into corporate sustainability challenges. This study finds that the absence of independent third-party verification undermines consumer confidence and heightens reputational risks for businesses. This study also finds that Malaysia's fragmented regulatory framework lacks robust enforcement mechanisms, allowing companies to self-certify sustainability efforts without standardised verification. This study highlights the need for more stringent regulatory oversight and independent auditing mechanisms to enhance corporate accountability in sustainability reporting. This study recommends implementing third-party verification for corporate sustainability claims and establishing a standardised framework for environmental disclosures, similar to the European Union (EU) Green Claims Directive. This study concludes that as scrutiny of corporate sustainability practices intensifies, businesses must prioritise transparency, ethical accountability, and compliance with regulatory standards to maintain stakeholder trust and long-term brand credibility. This study contributes to the discourse on corporate sustainability governance by offering insights into the risks associated with misleading environmental claims and advocating for stronger regulatory enforcement.