Allegations that financiers exaggerate their environmental ?commitments are raising concerns among academics and corporate ?watchdogs. These critiques of potentially misleading environmental ?claims suggest that despite outward appearances of sustainability and ?eco-friendliness, the underlying motives and actions often prioritize ?profit over genuine environmental progress. Greenwashing is a ?potentially significant problem because it could lead managers to make ?decisions based on inaccurate representations. We study greenwashing ?by financial intermediaries in a setting where firms face substantial ?financing constraints.