UK Lawmakers Target Phony Green Investment Claims

Law360, London (April 22, 2021, 12:15 PM BST) -- Senior MPs urged the government on Thursday to consider making environmental labels mandatory on all financial products and to ramp up its fight against investments that pretend to be more environmentally friendly than they really are.

The House of Commons Treasury Committee has published a report asking the government to clamp down on so-called greenwashing — the practice of labeling investments or assets as green or carbon-neutral when they are not. The government should also consider forcing companies to give investors more information about how sustainable their products are, the committee suggested.

"The government, private finance, consumers and regulators all have vital roles...

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