An analysis of the climate change disclosures of companies included in the BIST 25 Sustainability Index in the context of greenwashing risk

The deepening climate crisis and the degradation of natural resources have made sustainability one of the most important agenda items at the global level. Businesses, as one of the key stakeholders contributing to this crisis, disclose their environmental, social, and economic (ESG) performance through sustainability reports; however, the preparation of these reports in a misleading or non-representative manner gives rise to the problem of greenwashing. This study aims to evaluate the climate change–related disclosures of companies listed in the BIST 25 Sustainability Index within the framework of greenwashing risk by examining their sustainability reports for the period 2017–2023. Eight companies lacking reporting continuity were excluded from the analysis, resulting in a final sample of 17 firms. Adopting a multiple case study design, the research investigates the sustainability reports of BIST 25 companies through a systematic content analysis based on TerraChoice's "Seven Sins of Greenwashing" classification. This comprehensive methodological approach enables an in-depth examination of greenhouse gas emission data, the consistency between targets and realizations, the selective or symbolic use of language in corporate communication, and practices that obscure indirect environmental impacts. The findings reveal that the "Sin of the Hidden Trade-Off" is both widespread and systematic across the analyzed reports. In twelve of the companies examined, sustainability disclosures emphasized only positive environmental developments, while inconsistencies in greenhouse gas emission performance, major environmental risks or negative outcomes were omitted. Furthermore, a substantial portion of the reports included environmental claims that lacked quantitative evidence or independent verification, indicating the presence of the "No Proof" and "Vagueness" sins. These results point to a structural deficiency regarding transparency and accountability in corporate sustainability reporting. Keywords: Sustainability, Climate Change, Greenwashing, BIST 25, Sustainability Reporting