Three European regulators have issued statements calling for evidence on greenwashing.
The aim is to better understand the key characteristics, drivers and risks associated with greenwashing in financial services and to provide examples of this practice.
The three authorities, the European Banking Authority (EBA), the European Securities Markets Association (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), have published this information, recognizing that it builds a more detailed understanding of greenwashing practices. Recruitment has started. It helps inform policy-making and financial supervision, and improves the credibility of sustainability-related claims in financial services.
As demand for sustainability-related products and services grows, regulators recognize the need to better understand areas that may be vulnerable to greenwashing risks.
Drawing on evidence from industry stakeholders, this call for evidence demonstrates how greenwashing practices can undermine sustainable investment value chains and financial instrument lifecycle sustainability goals. It also helps build a big picture of what there is.
In this call for information, regulators recognize that “greenwashing” is a portmanteau word that relates to various environmental, social and governance considerations and links to financial services.
In this regard, these regulators welcome responses from the financial institutions under their supervision, along with a wide range of other stakeholders, including individual investors, consumer groups, non-governmental organizations and the university sector.
Respondents are asked to submit their contributions by January 10, 2023. They will be asked to focus on reporting the risks of greenwashing and examples of how these occur in the real world of financial services that fall within the scope of the three supervisory authorities in Europe. .
A final report detailing the findings of this Request for Evidence is targeted for May 2024.
