Greenwashing: ESAs Publish Final Reports

ESMA, the EBA and EIOPA published their final reports on greenwashing in the financial sector today, following last year's interim reports (see here). They reiterated their common high-level understanding of greenwashing as:

"...a practice whereby sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services. This practice may be misleading to consumers, investors, or other market participants."

Key takeaways:

• Clear increase in total number of potential greenwashing cases across all sectors from 2012 to 2023. Total number of alleged cases increased by 21.1% in all regions and by 26.1% in the EU when compared to 2022. Slight (6.8%) decline in the number of alleged cases in North America, which the EBA noted "can possibly be explained with the backlash in ESG matters and thus less reporting."