ESAs jointly launch Call for Evidence on greenwashing

Written by Michael Griffiths

15/11/2022

The three European Supervisory Authorities (ESAs), the EBA, EIOPA and ESMA, have today published a Call for Evidence on greenwashing.

The move is intended to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing practices.

Due to the growing demand for sustainability-related products, as well as the rapidly evolving regulatory regimes and sustainability-related product offerings, the ESAs said its call is also motivated by the need to better understand which areas may become more prone to greenwashing risks.

Furthermore, this call is seeking input on potential greenwashing practices relevant to various segments of the sustainable investment value chain and of the financial product lifecycle.

“Obtaining a more granular understanding of greenwashing will help inform policy making and supervision and will help foster the reliability of sustainability-related claims,” a statement from EIOPA said. “In the context of this call, the term ‘greenwashing’ is broadly used, recognising that sustainability-related claims can be linked to all aspects of the ESG spectrum.

“All interested parties are welcome to contribute to the survey, including financial institutions under the remit of the three ESAs and other stakeholders ranging from retail investors and consumers’ associations to NGOs and academia. Contributions should focus on greenwashing risks and occurrences arising in the financial sector and affecting financial products or services, which are under the scope of the ESAs.”

This Call for Evidence was issued in the context of the mandates received from the European Commission in May 2022.

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