ESG IZVJEŠTAVANJE IZMEĐU ETIKE I MANIPULACIJE: OSVRT NA FINANSIJSKI SEKTOR

Sustainable business practices and ESG (environmental, social, and governance) factors have become key elements of the modern financial sector, directing capital flows towards sustainable investments. However, increasing regulatory pressures and market demand for ESG practices have led to ethical challenges and manipulations in reporting. Greenwashing and the manipulation of ESG ratings through non-transparent assessment methodologies threaten the credibility of sustainable finance. This paper analyzes the boundary between ethical reporting and manipulative practices in the financial sector, focusing on mechanisms of ESG data misuse, selective disclosure of information, and regulatory challenges. Additionally, the paper provides a systematic literature review on ESG reporting, in order to identify key challenges and manipulation mechanisms, aiming to enhance regulatory practices and ensure more effective prevention of abuses in the financial sector. Given the central role of financial institutions in shaping sustainable investment markets, this study explores how they can balance ethical standards with market pressures and what reforms are necessary to ensure the credibility of ESG reporting. This focus on financial institutions stems from the recognition that, due to their intermediary role and exposure to pressures from various industries, they represent particularly fertile ground for analyzing potential manipulations of ESG standards.