European financial authorities gather evidence on greenwashing
16 November 2022 Europe
Image: HollyHarry/stock.adobe.com
Three European supervisory authorities have released a call for evidence on greenwashing.
The objective is to provide a better understanding of the major features, drivers and risks linked to greenwashing in financial services and to provide examples of this practice.
The three authorities, the European Banking Authority (EBA), the European Íø±¬³Ô¹Ï and Markets Association (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), have launched this call for information, recognising that building a more detailed understanding of greenwashing practices will help to inform policy making and financial supervision and will improve the reliability of sustainability-related claims in financial services.
With rising demand for sustainability-related products and services, the regulatory authorities recognise the need to develop a better understanding of areas that may become vulnerable to risk of greenwashing.
Drawing on evidence from industry stakeholders, this call for evidence will also help to construct a picture of how greenwashing practices may erode the sustainability objectives of the sustainable investment value chain and the financial product lifecycle.
In issuing this call for information, the regulators recognise that ‘greenwashing’ is a portmanteau term that can relate to a diverse range of environment, social and governance considerations and their links to finance services.
In this respect, these regulatory authorities welcome responses from financial institutions falling under their supervisory oversight, along with a wide range of other stakeholders including retail investors, consumer associations, non-governmental organisations and the university sector.
Respondents are invited to submit their contributions by 10 January 2023. They are asked to concentrate on reporting greenwashing risks and examples of how these occur in a practical context in financial services which fall under the scope of the three European supervisory authorities.
A final report, detailing the findings of this call for evidence, is targeted for May 2024.
The objective is to provide a better understanding of the major features, drivers and risks linked to greenwashing in financial services and to provide examples of this practice.
The three authorities, the European Banking Authority (EBA), the European Íø±¬³Ô¹Ï and Markets Association (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), have launched this call for information, recognising that building a more detailed understanding of greenwashing practices will help to inform policy making and financial supervision and will improve the reliability of sustainability-related claims in financial services.
With rising demand for sustainability-related products and services, the regulatory authorities recognise the need to develop a better understanding of areas that may become vulnerable to risk of greenwashing.
Drawing on evidence from industry stakeholders, this call for evidence will also help to construct a picture of how greenwashing practices may erode the sustainability objectives of the sustainable investment value chain and the financial product lifecycle.
In issuing this call for information, the regulators recognise that ‘greenwashing’ is a portmanteau term that can relate to a diverse range of environment, social and governance considerations and their links to finance services.
In this respect, these regulatory authorities welcome responses from financial institutions falling under their supervisory oversight, along with a wide range of other stakeholders including retail investors, consumer associations, non-governmental organisations and the university sector.
Respondents are invited to submit their contributions by 10 January 2023. They are asked to concentrate on reporting greenwashing risks and examples of how these occur in a practical context in financial services which fall under the scope of the three European supervisory authorities.
A final report, detailing the findings of this call for evidence, is targeted for May 2024.
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