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An award-winning paper shines light on environmental certification

There is growing attention to environmental sustainability in corporate communication, as public opinion in developed countries is increasingly keen on adopting “responsible” consumption patterns. The paper “Green Gatekeepers” by Alessandro Romano (Department of Legal Studies, Bocconi), Luca Enriques (Oxford University and Department of Legal Studies, Bocconi) and Andrew F. Tuch (Washington University in St. Louis), explores the often opaque world of environmental certifications, addressing critical gaps in how green claims are verified and validated. The paper has earned the 2024 Berkeley - ECGI Forum on Corporate Governance Best Paper Award.

As corporations increasingly promote products as “carbon neutral,” “sustainable,” or “especially green,” consumers and investors face growing challenges in distinguishing credible claims from misleading greenwashing. This information asymmetry can lead to market inefficiencies, misplaced trust, and missed opportunities for genuine environmental impact.

The paper examines the role of third-party certifiers (or “green gatekeepers”) in addressing this information asymmetry. These intermediaries set and verify green standards, attempting to ensure that environment claims reflect reality, not misleading marketing. 

There are three main points to the paper. First, it explains why green gatekeepers often face weaker reputational constraints than traditional financial gatekeepers, a situation which increases the risk of inaccurate certifications and greenwashing. Second, it examines over 450 green gatekeeping organizations, revealing systemic weaknesses. Third, it proposes a regulatory framework to enhance accountability and effectiveness in environmental certifications.

The award

The goal of the Berkeley - ECGI Forum on Corporate Governance Best Paper Award is “to highlight current legal research in ESG issues and bring together leading legal scholars, practitioners, and investors.” Green Gatekeepers” was selected as winner among roughly 100 papers submitted.

Enriques, Luca and Romano, Alessandro and Tuch, Andrew F., Green Gatekeepers (August 31, 2024). European Corporate Governance Institute - Law Working Paper No. 800/2024, 109 Minn. L. Rev. (forthcoming), http://dx.doi.org/10.2139/ssrn.4953984

ALESSANDRO ROMANO
Bocconi University
Department of Legal Studies

Research