The Corporate greenwashing has emerged as a major obstacle to achieving genuine sustainability, as misleading environmental claims weaken trust in ESG disclosures and distort market and policy outcomes. This book chapter aims to investigate the economic and institutional foundations of corporate greenwashing and to advance blockchain technology as a practical solution to this problem. Anchored in information asymmetry and signaling theory, the chapter frames greenwashing as a consequence of weak verification systems that allow firms to issue symbolic sustainability signals without credible enforcement.

The chapter pursues three interrelated objectives. First, it synthesizes the existing literature to identify the key incentives, mechanisms, and strategic behaviors that drive firms to engage in greenwashing. Second, it explains how blockchain’s core characteristics can fundamentally restructure ESG reporting systems by embedding credibility and verifiability at the data-generation stage, rather than relying solely on ex post detection. Third, it reviews empirical and applied evidence on blockchain-enabled solutions, including ESG reporting platforms, supply-chain traceability systems, and smart contracts, illustrating how these applications reduce information asymmetry and limit opportunities for data manipulation.

By positioning blockchain as a foundational digital infrastructure for sustainability governance, the chapter clarifies its analytical priority relative to complementary technologies such as FinTech and artificial intelligence. The chapter concludes with practical implications for policymakers, regulators, and firms seeking to design credible sustainability frameworks, while highlighting avenues for future research on scalability, regulatory integration, and adoption across diverse economic contexts.