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UK Regulator to Test Asset Managers’ ESG Claims for Greenwashing

ESG Today

The Financial Conduct Authority (FCA), the conduct regulator for financial services firms and financial markets in the UK, has informed asset managers that it will be testing the ESG and sustainable investing claims made in their communications with investors, as part of its efforts to reduce greenwashing risk.

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Only 20% of “Sustainable” Investment Funds Meet Proposed Anti-Greenwashing Criteria: Study

ESG Today

The report also found that barely any funds labelled as ‘sustainable’ would meet the proposed fund naming rules across the EU, UK and U.S. Proposals included in the consultation primarily focus on the minimum proportion of investments required to support an ESG-related fund name.

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Switzerland to Introduce Labelling and Disclosure Rules for Sustainable Investment Products

ESG Today

Switzerland’s Federal Department of Finance (FDF) announced today that it will proceed with plans to propose regulations to address greenwashing in the financial sector, including investment and disclosure rules for financial products using labels such as ‘sustainable,’ green,’ or ‘ESG.’

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EU Regulators Call for Increased Action to Address Growing Greenwashing Risk in Financial Sector

ESG Today

Increased supervisory actions and better access to data and other resources will be required to address growing greenwashing risks at banks, investment firms and insurance companies, according to new reports released by Europe’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs).

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Swiss Government Allows Financial Sector to Self-Regulate Greenwashing Prevention

ESG Today

Switzerland’s Federal Council announced today that it will hold off on regulating greenwashing in the financial sector, allowing instead for the industry to monitor itself, following progress made by the sector’s associations in developing and implementing self-regulatory provisions.

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EU Regulators Find Growing Greenwashing Risk for Banks, Asset Managers

ESG Today

Key sources of greenwashing risk identified by the regulators included claims about sustainability impact and company engagement made by asset managers, litigation risk related to misleading ESG claims made by banks, and misleading product claims by pension and insurance providers.

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EU Issues New Rules for Funds Using “ESG” or “Sustainability” Names to Address Greenwashing Risk

ESG Today

According to ESMA, the new guidelines were established as investor demand for ESG-focused funds has increased sharply, creating incentives for asset managers to include sustainability-related terms in fund names to attract investors, leading to an increased risk of greenwashing.