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ESG Fraud Risks: A Research Agenda

Curtis Farnsel et al.

Journal of Forensic Accounting Research2025https://doi.org/10.2308/jfar-2024-021article
AJG 2ABDC B
Weight
0.50

Abstract

Environmental, social, and governance (ESG) criteria are often used to screen investment and business decisions and have become the basis for sustainability reporting. Although ESG coverage is far more encompassing than financial reporting, it remains in its infancy. In the absence of robust measurement frameworks and standards, adequately trained personnel for reporting and auditing ESG disclosures, clarity regarding the demand and supply of ESG information, and strong regulation and oversight, ESG remains susceptible to fraud and abuse. Building on a supply-and-demand framework, we systematically identify and describe the “gaps” that characterize the ESG reporting environment and how they lead to various fraud risks, including misreporting of ESG performance, greenwashing, data manipulation, and the misrepresentation, mis-selling, and manipulation of carbon credits. We develop a research agenda relevant to ESG reporting and offer suggestions for future academic work. Data Availability: Not applicable. JEL Classifications: H32; L20; M14; M49.

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https://doi.org/https://doi.org/10.2308/jfar-2024-021

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@article{curtis2025,
  title        = {{ESG Fraud Risks: A Research Agenda}},
  author       = {Curtis Farnsel et al.},
  journal      = {Journal of Forensic Accounting Research},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.2308/jfar-2024-021},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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