CORPORATE JARGONS - WHAT THEY DON'T TELL YOU - THE BOMBASTIC TERMS THAT UNDERMINE GOVERNANCE PRACTICES

Disclaimer: The observations shared in this article highlight corporate practices that can obscure transparency, governance, and accountability. They are not meant to suggest that all corporations engage in such practices. Many organisations are upholding the highest standards of ethics, governance, and ESG compliance, and are demonstrating exemplary leadership and integrity in their operations. The purpose of this discussion is to encourage scrutiny, informed oversight, and continuous improvement in corporate practices.

In today’s corporate landscape, language has become a powerful shield.

Annual reports, sustainability statements, investor briefings and press releases are increasingly filled with impressive-sounding terms : order books, adjusted earnings, strategic partnerships, net-zero commitments. None of these are inherently wrong.

But when clarity, metrics, and accountability are missing, language becomes a tool of concealment rather than communication.

This is where credibility, good practices of management systems and board governance expectations quietly erode.

Below are common corporate terms that deserve closer scrutiny, especially by boards, auditors, regulators, and stakeholders.

1. ORDER BOOK VALUE

A large order book is often presented as proof of future strength.

Governance question: 

• How much is legally binding versus indicative?

• What is the cancellation risk and margin quality?

From governance standpoint, overstating certainty misleads stakeholders and distorts risk disclosure.

2. “MISCELLAENEOUS" or “OTHER” ITEMS

These are often dismissed as immaterial.

Red flag: When “miscellaneous” becomes material in size, it signals weak internal controls and poor financial transparency both inconsistent with good practices on accurate record-keeping.

3. ADJUSTED EBITDA

Adjustments are sometimes necessary.

Governance failure occurs when:  Recurring costs are repeatedly labelled “exceptional” to manufacture performance.

Boards should ask: Why does the business need constant adjustment to look viable?

4. NON-RECURRING/ONE-OFF ITEMS

If a “one-off” appears every year, it is no longer one-off.

This practice undermines truthful reporting, a core requirement of ethical governance and anti-corruption frameworks.

5. STRATEGIC PARTNERSHIPS

Often announced with fanfare.

Key oversight questions:

• Is there capital commitment or just an MoU?

• Are responsibilities and risks clearly allocated?

Anti Corruption Practices expects clear due diligence on partners, not headline-driven alliances.

6. PIPLELINE PROJECTS

A pipeline is potential not performance.

Boards should demand:

• Approval status,

• Funding certainty,

• Historical conversion rates

Without this, pipeline disclosures become optimism bias masquerading as strategy.

7. REVENUE GROWTH

Revenue growth alone does not indicate value creation.

From a governance lens:

• Are margins sustainable?

• Are receivables ballooning?

Is growth driven by discounting or risk-taking?

Cash integrity matters more than top-line numbers.

8. COST OPTIMIZATION AND EFFICIENCY INITIATIVES

Cost optimisation is often celebrated.

But what is being cut? Training? maintenance? safety? and compliance? - cuts from these items may boost short-term figures while creating long-term ESG and operational risks.

9. “STRONG BALANCE SHEET”

This phrase deserves interrogation.

Boards must look beyond headline ratios to:

• Off-balance-sheet obligations,

• Short-term liquidity dependence,

• Covenant exposure

True financial resilience is stress-tested, not asserted.

10. DEFERRED REVENUE

Often framed as future income.

In reality, it is a delivery obligation. Failure to deliver can trigger penalties, refunds, or reputational damage directly impacting ESG trust.

11. FAIR VALUE GAINS

Valuation gains are not cash.

When executive incentives are linked to unrealised gains, governance misalignment emerges, contradicting responsible remuneration principles.

12. RELATED PARTY TRANSACTIONS

Legal does not automatically mean "ethical".

Anti-Corruption practices and good governance require:

• Transparent pricing,

• Independent approval,

• Minority shareholder protection

13. GOING CONCERN STATEMENTS

A going concern statement signals survival, not strength.

Boards should ensure stakeholders understand the assumptions behind continuity, not just the conclusion.

14. DIGITAL TRANSFORMATION/AI-DRIVEN/ESG LED

Buzzwords are not strategies.

Boards should demand evidence of:

• Implementation,

• ROI

• Risk management and controls

PowerPoint compliance is not operational compliance.

15. GREENWASHING - THE ESG CREDIBILITY CRISIS

Perhaps the most damaging practice today.

Common patterns include:

• Selective emissions reporting (Scope 3 ignored),

• Heavy reliance on offsets instead of reductions,

• Sustainability claims without third-party assurance,

ESG without verifiable data, targets, and accountability is greenwashing branding not responsibility.

Governance reminds us that misrepresentation is a corruption risk, even when framed as sustainability.

What This Means for Boards

Modern boards are no longer judged only on financial performance. They are expected to ensure:

• Truthful, complete, and balanced disclosure,

• Ethical conduct embedded in systems, not slogans,

• ESG claims aligned with operational reality

Anti-Corruption principles reflected in decision-making (not just certification)

15. CORPORATE JARGON AND IMPACT ON STOCK MARKET PRICING

Corporate language doesn’t just influence internal governance, it can have a direct impact on market perception and stock valuation.

When public companies use bombastic terms, order books, adjusted EBITDA, pipeline projects, or ESG/green claims  without full transparency, Investors may overestimate future cash flows or profitability, driving share prices higher than fundamentals justify.

Short-term enthusiasm can mask long-term risks, such as margin erosion, unsustainable cost cuts, or one-off accounting adjustments. 

Greenwashing or exaggerated ESG claims can temporarily attract ESG-focused funds, yet may lead to reputational and financial risk if claims are later questioned.

Conversely, strong, transparent reporting builds credibility, leading to more stable valuation, lower cost of capital, and better investor confidence.

Stock markets react not just to actual performance, but to narratives, trust, and perceived governance quality. Boards, auditors, and investors should recognize that clarity and accountability in corporate communication are as critical as the underlying numbers themselves.

In short - the way a company presents itself is inseparable from how the market values it. Misleading or vague corporate language can inflate short-term pricing but undermines long-term shareholder trust and market efficiency.

BRIEF CONCLUSION (for now)

The louder the language, the greater the duty to question it.

Strong organisations do not hide behind terms. They explain them, evidence them, and invite scrutiny. That is the real test of governance, ESG integrity, and leadership accountability. 

A DECADE OF JOURNEY WITH GERSON LEHRMAN GROUP

After 10 years with GLG, including my memorable visit to GLG Malaysia and meeting Ms. Karen Soh, the journey has truly been meaningful. I’ve gained invaluable insights, especially in compliance and governance, which have strengthened my work across various engagements.

Here where I am now, certain institutions (not all) still face limitations in formally certifying or validating my diverse experience and competencies due to regulatory frameworks (possibly bureaucracy). That’s why I value platforms like GLG, (even UKAS, C & G, BCA Sing, ABAC CB UK etc) other international professional institutions that recognize expertise based on merit. Their trust has placed me in a comfortable and confident position, and it’s a testament to how Malaysian professionals can be acknowledged globally.

Thank you to the entire GLG team, for the continued trust, opportunities, and commitment to building a strong community of expertise. I look forward to contributing more in 2026 and growing together with the network.

Wishing everyone at GLG a meaningful year-end and an inspiring year ahead.

PUBLIC TRUST AND GOVERNANCE - WHY INTEGRITY STILL MATTERS IN 2025

In an era where digital systems, AI decision-making, and instant information dominate every aspect of governance and business, integrity remains the one value that technology cannot automate.

The rise of anti-scam initiatives, ISO 37001 Anti-Bribery Management Systems (ABMS), and financial accountability measures in recent years shows that society is not just demanding efficiency but ethics as well. 

Yet, the real question remains: Have we restored public trust?

1) Integrity Beyond Compliance

Too often, integrity is treated as a checklist item, something to “tick off” in annual audits. But integrity isn’t paperwork, it’s a culture.

A nation’s reputation is built not only on how quickly it grows but on how honestly it does so. When ethical procurement, transparent reporting, and responsible leadership become second nature, public confidence follows naturally.

2) The Cost of Losing Trust

Every corruption scandal, every broken promise, and every manipulated tender erodes public confidence not just in institutions but in the idea of fairness itself.

Once trust is lost, no amount of PR or slogans can rebuild it. The real currency of governance is credibility.

3) Technology Can Detect, but People Must Decide

With AI-driven monitoring, blockchain traceability, and digital reporting, we now have tools that can detect irregularities faster than ever.

But technology is only as ethical as the people who use it. Governance needs leaders with moral clarity those who understand that integrity is not just compliance, it’s conviction.

4) A Call to Leadership

In 2025 and beyond, the leaders who will inspire are not the loudest or richest but the most trustworthy.

Integrity is not old-fashioned, it’s the new competitive edge.

When citizens believe their leaders are honest, they’ll walk further with them even through difficult reforms.

BLOCKCHAIN AND CLIMATE CHANGE - OVERVIEW BY NIK ZAFRI

Best Viewed by reading  LinkedIn Version

Blockchain technology, often associated with cryptocurrencies, is emerging as a powerful tool in the fight against climate change. By providing transparent, secure, and decentralized solutions, blockchain has the potential to enhance environmental monitoring, improve the efficiency of carbon markets, and promote sustainable practices. However, this technology also faces challenges due to its own environmental impact, particularly in terms of energy consumption. As the world seeks innovative ways to tackle climate change, blockchain is at a pivotal point, balancing its promise for climate action with the need to reduce its carbon footprint.

1.0 WHAT BLOCKCHAIN OFFERS FOR CLIMATE CHANGE

1.1 Transparency and Traceability in Supply Chain Tracking

Blockchain can enhance transparency in supply chains, ensuring products are sourced sustainably. This allows companies to trace the origins of materials and certify that they comply with environmental standards.

Example 1: IBM Food Trust uses blockchain to track the journey of food products from farm to table. It allows consumers and companies to verify that agricultural products are grown and sourced sustainably. For example, retailers can trace if coffee beans are ethically harvested and organic-certified, ensuring compliance with environmental standards.

Source : Food Logistic Dot Com

 - Example 2: Everledger uses blockchain to track diamonds, ensuring they are conflict-free and ethically sourced. This principle can be applied to minerals like cobalt, crucial for batteries, to ensure they are mined responsibly.

1.2 Carbon Footprint Tracking

tracking of carbon footprints across entire supply chains, helping companies reduce their emissions. It can verify carbon credits and offsets, preventing fraud in carbon markets by providing clear proof of transactions.

Example 1: ClimateTrade is a blockchain platform that allows companies to offset their carbon emissions by buying verified carbon credits. It provides transparency, showing exactly how funds are used for environmental projects like reforestation or renewable energy.

Example 2: CarbonX tracks carbon reductions across a supply chain and allows companies to earn tradeable tokens for their carbon savings, ensuring carbon credits are accurately accounted for.

1.3 Decentralized Energy Grids - Peer-to-Peer Energy Trading

Blockchain supports the creation of decentralized energy markets, where individuals can buy and sell renewable energy directly, such as solar power from their solar panels.

Example 1: Power Ledger, an Australian company, enables households with solar panels to trade excess electricity with their neighbors using blockchain technology. This creates a local energy marketplace without relying on a central utility.

Example 2: Brooklyn Microgrid  uses blockchain to allow residents in Brooklyn, New York, to buy and sell locally produced solar energy within their neighborhood, fostering renewable energy use.

1.4 Grid Efficiency

It can improve the efficiency and management of decentralized grids by recording energy generation and consumption data in a secure and transparent manner.

Example 1: Grid+ is a blockchain-based project that improves grid efficiency by optimizing energy distribution based on real-time data. The system manages energy flows and consumption, reducing waste and lowering costs for consumers.

Example 2: #WePower uses blockchain to record energy production and consumption data for renewable energy producers. This helps utility companies forecast demand accurately and integrate more renewable energy into the grid efficiently.

1.5 Incentive Systems for Sustainability - Green Financing

Blockchain can facilitate green finance by enabling tokenization of carbon credits and green bonds, making it easier to invest in sustainable projects.

Example: Moss.Earth is a blockchain-based company that tokenizes carbon credits, allowing individuals and businesses to invest in Amazon rainforest preservation. The funds are directly traceable, supporting conservation projects.

Example: Energy Web Foundation tokenizes energy attributes like carbon credits and renewable energy certificates, making it easier for companies to invest in renewable projects through blockchain-certified tokens.

1.6 Reward Programs

Platforms can use blockchain to incentivize eco-friendly behaviors, such as recycling or using public transportation, by rewarding users with tokens.

Example 1: RecycleToCoin uses blockchain to reward people with tokens when they recycle plastic, glass, and other materials at designated recycling centers. These tokens can be redeemed for cash or used for other purposes, encouraging recycling habits.

Example 2: Ecocoin rewards individuals for eco-friendly behaviors like biking instead of driving or buying sustainable products. Participants earn Ecocoins that can be exchanged for discounts or eco-friendly products, motivating sustainable choices.

2. BLOCKCHAIN'S NEGATIVE IMPACTS ON CLIMATE CHANGE

2.1 Energy Consumption - Proof-of-Work (PoW) Mining

Traditional blockchain systems like Bitcoin use PoW, which requires significant computational power. This consumes large amounts of electricity, contributing to carbon emissions if the energy source is non-renewable. 

Bitcoin, the most well-known cryptocurrency, uses a Proof-of-Work consensus mechanism requiring miners to solve complex mathematical problems. This process consumes enormous amounts of electricity. In 2023, the annual energy consumption of the Bitcoin network was estimated to be around 140 terawatt-hours (TWh), roughly equivalent to the electricity usage of a country like Argentina.

Another example is Ethereum during the pre-merge phase

Before transitioning to Proof-of-Stake (PoS) in 2022, the Ethereum network operated on a PoW system, consuming roughly 112 TWh annually, similar to the annual energy consumption of the Netherlands. This raised significant environmental concerns, pushing Ethereum to switch to a more energy-efficient model.

2.2 Global Carbon Footprint

The energy demand of major blockchain networks has raised concerns about their contribution to climate change, especially if operations rely on fossil fuels.

Before China’s crackdown on cryptocurrency mining in 2021, about 65% of Bitcoin’s global mining took place in China. Much of this mining was powered by coal-fired plants, contributing substantially to global carbon emissions. Estimates suggested that Bitcoin mining in China alone could generate 130 million metric tons of CO₂ emissions by 2024.

After China's ban, Kazakhstan became a popular destination for Bitcoin miners due to cheap electricity, much of which comes from coal-fired power plants. In 2022, Bitcoin mining accounted for 8% of Kazakhstan’s total electricity consumption, leading to increased greenhouse gas emissions in a country heavily reliant on fossil fuels.

2.3 Electronic Waste - Mining Hardware

The rapid obsolescence of specialized mining hardware (like ASICs) generates electronic waste, posing additional environmental challenges. Proper recycling and disposal are often lacking.

Example 1: ASIC Miner Obsolescence

Application-Specific Integrated Circuits (ASICs) are specialized hardware used for mining cryptocurrencies like Bitcoin. Due to rapid advancements, newer, more efficient ASIC models frequently replace older ones. A study in 2021 estimated that Bitcoin mining generated around 30,700 tons of electronic waste annually, equivalent to the amount of small IT and telecommunication equipment discarded by the Netherlands.

Example 2: Graphics Processing Units (GPUs): For cryptocurrencies like Ethereum (prior to its switch to PoS), miners used GPUs. High demand for newer and more powerful GPUs has led to massive turnover and obsolescence, contributing to e-waste. In 2018, a significant price hike in GPUs occurred due to mining demand, with older models often discarded as newer versions emerged, adding to the growing electronic waste problem.

3.0 POSSIBLE EMERGING SOLUTIONS TO MINIMIZE BLOCKCHAIN'S CARBON FOOTPRINT

3.1 Transition to Energy-Efficient Consensus Algorithms - Proof-of-Stake (PoS)

Newer blockchains like #Ethereum 2.0 use PoS, which drastically reduces energy consumption compared to PoW. This shift aims to maintain blockchain's benefits while minimizing its environmental impact.

In September 2022, Ethereum transitioned from a Proof-of-Work (PoW) system to Proof-of-Stake (PoS) through "The Merge." This move reduced the network's energy consumption by over 99.9%, since validators no longer require energy-intensive mining equipment, relying instead on staked coins to secure the network.

Another example would be Cardano uses a PoS system called Ouroboros, designed to be environmentally friendly and scalable. It relies on staked ADA tokens for network security, significantly lowering its energy consumption compared to PoW blockchains.

3.2 Hybrid Models

Some blockchains use a combination of PoW and PoS or other efficient algorithms to balance security and sustainability.

Example 1: Hedera Hashgraph - Uses a consensus algorithm known as Hashgraph, which combines elements of PoW and PoS-like mechanisms to provide high efficiency. It operates on a network of "Governing Council" nodes that validate transactions, aiming to be secure and scalable while minimizing energy use.

Example 2 - Decred: This blockchain employs a hybrid consensus model that incorporates both PoW and PoS. PoW miners secure the initial layer of transactions, while PoS stakeholders provide an additional layer of verification, balancing security and reducing energy usage compared to purely PoW systems.

 

3.3 Green Mining Initiatives - Renewable Energy Mining

Some blockchain projects are committing to using 100% renewable energy for mining, such as solar or hydroelectric power, reducing their environmental impact.

Example 1: Soluna Holdings - This company operates renewable energy-powered data centers for Bitcoin mining. They use wind and solar power in remote regions where excess renewable energy is available, reducing the reliance on fossil fuels for mining operations.

Example 2: Genesis Mining - One of the largest cloud mining companies, Genesis Mining operates facilities in Iceland, using 100% renewable energy from geothermal and hydroelectric sources for cryptocurrency mining. This significantly reduces the environmental impact of its operations.

3.4 Carbon Offsetting

Initiatives are in place for blockchain platforms to offset their carbon footprint by investing in renewable energy projects or purchasing carbon credits.

Example 1: Algorand - The Algorand blockchain has committed to becoming a carbon-negative blockchain by partnering with #ClimateTrade to purchase carbon offsets. This initiative offsets the small carbon footprint Algorand has, primarily through tree-planting projects and renewable energy investments.

Example 2 Chia Network - Chia, which uses a "Proof-of-Space-and-Time" consensus algorithm, aims to be environmentally friendly. In addition to using less energy-intensive mining, it has pledged to offset any remaining carbon footprint by purchasing carbon credits and investing in sustainability projects.

Emerging solutions to reduce blockchain’s environmental impact focus on more efficient consensus algorithms like PoS, hybrid models that balance security with sustainability, green mining initiatives using renewable energy, and carbon offset programs. These strategies help make blockchain technology more eco-friendly while retaining its core functionalities. 

4.0 ENVIRONMENTAL MONITORING AND GOVERNANCE

4.1 Data Integrity for Climate Research

Blockchain can ensure the integrity and reliability of environmental data, which is crucial for research and policy-making. Immutable records can help scientists track and verify climate change data.

Example 1: Climate Ledger Initiative - This initiative leverages blockchain to track climate data and enhance transparency for environmental reporting. By storing climate data on a blockchain, it provides a secure and tamper-proof record, allowing researchers and policymakers to access reliable data for climate change assessments. This helps prevent data manipulation, which is crucial for informed policy decisions.

Example 2: IBM's Environmental Intelligence Suite - IBM uses blockchain technology to collect, track, and verify environmental data, such as air quality, temperature, and emissions. The immutable records allow researchers to validate the accuracy of climate data over time, ensuring that environmental studies and reports are based on dependable information.

4.2 Smart Contracts for Environmental Agreements

Blockchain can enforce international climate agreements through smart contracts that automatically execute conditions when pre-defined criteria are met, such as emission targets.

Example 1: UN Climate Chain Coalition (Website : Inatba as an example) - This coalition explores using blockchain and smart contracts to enforce and monitor international climate agreements, such as the Paris Agreement. Smart contracts could automatically track emission reductions and verify compliance with targets, facilitating greater accountability among participating nations.

Example 2: Climate DAO (Decentralized Autonomous Organization) (Website : KlimaDAO Japan as an example) - This DAO is designed to use blockchain-based smart contracts to manage funding for climate initiatives. It can automatically allocate resources and track the performance of environmental projects. If a project meets predefined environmental impact criteria (like a specific reduction in emissions), funds are released to continue the project, ensuring that resources are spent effectively.

Blockchain’s role in environmental monitoring and governance centers on providing accurate, immutable data for climate research and leveraging smart contracts to enforce environmental agreements. These solutions enhance accountability, ensure compliance with climate targets, and facilitate data-driven decision-making, making blockchain a valuable tool for addressing global climate challenges.

5.0 IMPACT ON COST AND FINANCE

5.1 Reduced Transaction Costs in Carbon Markets

Example 1: Traditional carbon credit trading often involves intermediaries, leading to high transaction fees. Platforms like ClimateTrade reduce these costs by using blockchain to facilitate direct transactions between buyers and sellers, ensuring that more funds go towards environmental projects rather than intermediaries.

Example 2: Veridium is a blockchain-based platform that eliminates the need for brokers in carbon credit trading, lowering fees and making carbon offsetting more affordable for companies looking to reduce their carbon footprints.

5.2 Lowering Costs in Renewable Energy Projects

Example 1 : By using blockchain for smart contracts, renewable energy projects like those managed by #WePower can reduce legal and administrative costs. Smart contracts automatically enforce terms of agreements without third parties, making financing and investments cheaper and faster.

Example 2: Sun Exchange, a blockchain-based solar energy platform, allows people to invest in solar panel installations globally with small amounts of capital. This reduces the financial burden on communities seeking renewable energy solutions by allowing micro-investments and reducing overhead costs.

5.3 Financing for Small-Scale Green Projects

Example 1: Blockchain platforms like Energy Web Foundation provide tokenized financing options, allowing smaller green projects to access capital through decentralized funding. This approach cuts down the costs associated with traditional fundraising, such as bank fees or venture capital.

Example 2: SolarCoin - a blockchain-based cryptocurrency, rewards solar energy producers with tokens, providing them with additional financial support for green projects. This reduces dependency on traditional financial institutions, cutting costs for small-scale renewable energy initiatives.

5.4 Crowdfunding Sustainable Initiatives

Example 1: Blockchain platforms such as #DAOstack allow environmental projects to crowdfund through decentralized autonomous organizations (DAOs). This makes raising funds for sustainability projects cheaper by reducing reliance on traditional financial institutions and high administrative fees.

Example 2: Kickstarter-like blockchain platforms (e.g., #KickICO ) enable projects to launch Initial Coin Offerings (ICOs) specifically for green and sustainable initiatives. This reduces the complexity and costs of conventional IPOs, allowing smaller climate projects to access global funding.

5.5 Efficient Management of Green Bonds

Example 1 - Blockchain-based green bonds, like those issued by BBVA, use blockchain for all processes related to bond issuance, settlement, and management. This cuts down administrative and auditing costs, making green financing more cost-effective for both investors and issuers.

Example 2: The World Bank’s Blockchain Bond, known as "bond-i," was the first global blockchain-based bond. It demonstrated how blockchain could automate interest payments and settlement processes, drastically reducing costs related to bond issuance and increasing transparency.

5.6 Operational Cost Savings through Smart Contracts

• Example 1: Smart contracts on platforms like #Ethereum can automate payments in energy trading, reducing overhead costs for managing energy sales. For instance, solar farms can use smart contracts to automatically trigger payments for energy delivered, lowering administrative costs.

• Example 2: Grid Singularity, a blockchain-based energy market, uses smart contracts to match buyers and sellers of renewable energy instantly. This reduces the need for brokers and minimizes transaction costs for energy producers and consumers.

Blockchain technology can significantly reduce costs associated with green finance, carbon trading, renewable energy projects, and sustainable initiatives. By eliminating intermediaries, automating transactions with smart contracts, and providing decentralized access to funding, blockchain can make sustainability efforts more financially viable and accessible to a broader audience.

6.0 CONCLUSION

While blockchain technology has potential to drive transparency and accountability in climate action, its traditional forms can negatively impact the environment through high energy consumption and electronic waste. However, newer, more sustainable blockchain technologies and green initiatives are emerging to address these challenges, making blockchain a valuable tool in the fight against climate change.