The European Supervisory Authorities published their Progress Reports on Greenwashing on June 1st. The reports includes a common high-level understanding of Greenwashing and thus helps to provide market participants and regulators with a shared reference point in dealing with this phenomenon.
In the report, ESMA assesses which areas of the sustainable investment value chain (SIVC) are more exposed to the risk of greenwashing. This assessment is meant to help market participants in preventing and mitigating greenwashing, and to support ESMA and NCAs in prioritising supervisory actions and regulatory intervention. The findings show that misleading claims may relate to all key aspects of the sustainability profile of a product or an entity – from governance aspects to sustainability strategy, targets and metrics or claims about impact. The report also provides sectorspecific assessments for key sectors under ESMA’s remit such as issuers, investment managers, benchmark administrators and investment service providers.
The final ESA greenwashing report is expected to be published in May 2024.
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