According to European regulators, the greater attention paid to environmental protection and climate change by investors means there is a growing risk of glossed-over offers. The banking regulator EBA, the insurance regulator EIOPA and the securities regulator ESMA presented their latest analyzes on so-called greenwashing in the financial sector on Thursday. “The result of the quantitative analysis of the greenwashing phenomenon shows a significant increase in the total number of potential greenwashing cases in all sectors, including EU banks,” noted the EBA. Greenwashing means that companies market products or services as environmentally or climate-friendly, even though they may not be. The EU Commission wants to channel more money into green investments. Bank advisors and insurance brokers must therefore now ask about the preferences of their customers when it comes to sustainability when providing investment advice. When investing, it should no longer just be about return opportunities and risk, but also about the environment, social issues and good corporate governance: the abbreviation ESG (Environmental Social Governance) has found its way. “Data from the past few years regarding misleading communications on ESG issues shows a significant increase in the total number of potential greenwashing cases across all sectors, including EU banks,” writes the EBA.
Financial Sector Greenwashing Warning – Economy
