  This paper introduces and defines a novel concept in sustainable investing,
termed crosswashing, and explore its impact on ESG (Environmental, Social, and
Governance) ratings through quantitative analysis using a Multi-Criteria
Decision Making (MCDM) model. The study emphasises that this specific form of
greenwashing is not currently considered in existing ESG assessments,
potentially leading to an inflated perception of corporate ethical practices.
Unlike traditional greenwashing, crosswashing involves companies strategically
investing in sustainable activities to boost Environmental, Social, and
Governance (ESG) scores while preserving nonsustainable core operations. By
unveiling the nuances of crosswashing, the research contributes to a more
nuanced understanding of sustainable investing, offering insights for improved
evaluation and regulation of corporate environmental and ethical
responsibilities.
