Over 300 thousand people have subscribed to an Eni bond advertised as “green”, including by major Italian media outlets. They may have contributed, without knowing it, to global warming.
Journalismfund Europe
At the heart of Europe’s green finance system—designed to steer investment toward renewable energy and sustainable development—lies a growing deception. Major extractive companies, particularly in the oil, gas, and mining sectors, are quietly tapping into billions of euros in so-called “green” financing by exploiting regulatory gray zones and orchestrating mass disinformation campaigns.
This investigation exposes how these polluting giants secure funding meant for clean transitions, all while continuing harmful operations that contradict their climate commitments. With the complicity of asset managers and a lack of regulatory oversight, green finance is being systematically undermined.
The Trojan Horse: Sustainability-Linked Bonds (SLBs)
One of the most abused instruments in this scheme is the Sustainability-Linked Bond (SLB) , a type of debt issuance that allows companies to borrow under the promise of achieving environmental goals in the future, without being required to spend the money on sustainable projects now.
Case Study: Eni S.p.A.
Italian oil and gas multinational Eni raised €2 billion through an SLB in 2023. The company promoted this bond to the public as a key part of its “just energy transition” strategy. However, our investigation reveals a starkly different picture.
What we found:
- Up to 86% of the bond’s proceeds may be directed toward major extractive projects around the world—known as “carbon bombs” due to their enormous greenhouse gas emissions potential.
- Eni has no binding obligation to invest the proceeds in clean energy or environmental protection.
- To meet its weak emissions targets, Eni relies on low-quality carbon credits to offset emissions, resulting in negligible actual reduction of operational emissions.
- The company launched a massive PR campaign in major Italian newspapers to brand the bond as “green,” influencing public perception and luring responsible investors into what is essentially a traditional fossil fuel instrument.
Green Lies in Print: A PR Campaign Disguised as News
Using advertorials disguised as editorial content, Eni successfully portrayed its bond issuance as an environmentally transformative initiative. Articles across major media outlets described it as a “climate-saving bond” despite lacking genuine sustainability commitments.
These media placements were part of a coordinated effort to mislead the public and regulators by blurring the line between real sustainability and corporate branding.
The Real Victims: Investors, Communities, and the Planet
This greenwashing scandal has consequences that go far beyond financial deception:
- Responsible investors are misled into supporting environmentally destructive companies under false pretenses.
- Local communities suffer from extractive projects that proceed under a false banner of “just transition.”
- The environment continues to bear the cost of carbon-intensive operations funded by mislabeled financial instruments.
Lack of Oversight: A System Designed to Be Exploited
While the European Union’s Sustainable Finance Disclosure Regulation (SFDR) exists to guide green investments, it does not regulate SLBs. This leaves a critical loophole: companies can issue bonds branded as sustainable, even when the money supports business-as-usual operations.
Asset managers and financial institutions, eager to appear aligned with ESG principles, also turn a blind eye or participate knowingly in the façade—profiting from the illusion of green finance without any real accountability.
What Needs to Change
To reclaim the credibility of sustainable finance, urgent reforms are needed:
- Tighten regulatory definitions of “sustainable” finance and prohibit deceptive marketing of financial products.
- Enforce transparency in how proceeds from green bonds and SLBs are used.
- Hold companies and fund managers accountable for misleading sustainability claims.
- Empower independent watchdogs and investigative bodies to audit and expose abuses in the green finance sector.
Green in Name Only
Europe’s sustainable finance initiative was meant to accelerate the shift to a low-carbon economy. Instead, it’s being repurposed by the very industries it sought to transform. Polluting corporations are using the language of sustainability to shield themselves from scrutiny and prolong environmentally destructive practices.
The world cannot afford “green” labels that serve as fig leaves for business-as-usual. Real climate action demands real transparency, integrity, and bold regulatory enforcement.