Greenwashing: EIOPA Publishes Its Final Report And Opinion

Together with the other European Supervisory Authorities (ESAs), EIOPA recently published its final report on greenwashing. The report reiterated the ESAs common high-level of understanding of greenwashing as the "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."

The report highlights that, as insurers adopt more sustainable practices, the risk of greenwashing increases, as consumers may be misled by inaccurate sustainability claims. The report therefore sets out nine key proposals aimed at enhancing the supervision of greenwashing and improving the sustainable finance regulatory framework: