Lack of verifiable proof diminishes true impact of ESG claims Accusations of ‘greenwashing’ or getting ‘blindsided’ all too common Greenwashing Blindsiding 2001: pledge to eliminate child labor by 2005 Founded with mission for “all chocolate 100% slave free” 2010: first CSR report, touting its child labor efforts; Recently removed from Slave Free Chocolate list due to advocacy groups critical, citing poor relative supply chain association with Barry Callebaut(1) performance 2010: announces sustainability core to mission Beauty products claiming 100% certified organic / vegan 2018: Greenpeace found key palm oil suppliers causing Facing ~$2M FTC fine for reliance on fake certifications mass deforestation; company under investigation for its role Named top 10 carbon emitter by EU report (2020) Cookies using palm oil labeled “certified sustainable” Ad response: “lowest carbon emission for major airline” Despite certification, recipe uses mix of sustainable and Forced to retract for basing claim on business model vs. unsustainable oils, with as a little as 1% being sustainable actions sustainable Insufficient certification costly; 24 ESG controversies erased >$500B S&P 500 (’14-’19) (1) Logistics partner the subject of International Rights Advocates lawsuit; Industry reports, web research; Financial Times, “ESG controversies wipe $500B off value of US companies”