Viewpoints ESMA's Final Report On Greenwashing

Last month,the European Supervisory Authorities (EBA, ESMA and EIOPA – together, the ESAs) each recently published their Final Reports to the European Commission on greenwashing in the financial sector. The reports have been published in response to the request from the European Commission in 2022 to the ESAs for a coordinated input on greenwashing risks and the supervision of sustainable finance policies. The ESAs confirm their common understanding of greenwashing as "a practice where 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".