European banking, insurance and financial supervisors agree common position on ‘greenwashing’


emisores | The European banking (EBA), insurance (EIOPA) and finance (ESMA) regulators have published their respective Progress Reports on Greenwashing, in which they ‘present a high-level common position on greenwashing applicable to market participants in their respective competences’. The reports of the so-called ESAs – or European Supervisory Authorities – assume a coordinated definition of what greenwashing is, ‘a practice whereby sustainability-related communications, statements or actions do not clearly and fairly reflect the underlying sustainability profile of an entity, financial product or financial service’, so that ‘this practice may be misleading to consumers, investors or other market participants.’ The reports detail the causes and concrete risks generated by greenwashing in the different areas of the respective sectors, and advance some ‘preliminary actions to mitigate it’, pending future final reports where the ESAs will consider their ‘final recommendations, including possible changes to the European regulatory framework’ in this area.

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