EU Aims To Stop 'Greenwashing' Of Financial Products

Law360, London (February 13, 2020, 2:57 PM GMT) -- Europe's markets watchdog has said that asset managers must disclose in a standardized format how the products they offer are environmentally and socially beneficial in order to avoid misleading investors about the environmental and social benefits of products.

The European Securities and Markets Authority said on Wednesday that investors must have access to reliable and relevant information about the environmental, social and governance impact of financial products that they funnel cash into, as consumers shift toward a preference for sustainable finance.

But ESMA Chairman Steven Maijoor called out agencies that provide ratings of the environmental impact of funds and other products...

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