ESG Greenwashing
Greenwashing is the most mentioned problem in ESG, and it is also an issue involving many stakeholders like consumers, investors, enterprises.
Although the world has not yet formed a consistent definition of greenwashing, various jurisdictions have realized the harm and actively issued policies.
Types of Greenwashing
Common types of greenwashing include:
Greencrowding: refers to the situation where a company, in an industry with many market participants, believes that its behavior is difficult to detect and takes greenwashing actions.
Greenlighting: refers to the practice of a company carrying out and promoting sustainable actions in a certain direction to attract market attention, but greenwashing in other areas.
Greenshifting: refers to companies blaming the emergence of greenwashing issues as a result of consumers themselves.
Greenlabeling: refers to a statement made by a company that its products and services meet green standards, but in reality, they have not met these standards or are misleading to consumers.
Greenrinsing: refers to the process in which a company continuously changes its sustainable goals before achieving them, in order to reduce market attention to the original goals.
Greenhushing: refers to companies reduce underperforming issues in sustainable disclosure and avoid scrutiny.
European Banking Authority Releases Final Report on Greenwashing in Banking Sector
European Banking Authority (EBA) releases final report on greenwashing in banking sector
UK Financial Conduct Authority Releases Guidance on Anti-Greenwashing Rule
The UK Financial Conduct Authority releases guidance on anti-greenwashing rules
ESMA Releases Report on Financial Impact of Greenwashing Controversies
ESMA releases a report on the financial impact of greenwashing controversies
International Capital Market Association Releases Greenwashing Report on Sustainable Finance
The International Capital Market Association (ICMA) released a greenwashing report on sustainable finance
CFA Institute Releases Fund Disclosure and Greenwashing Risk Report
CFA Institute Research and Policy Center releases the fund disclosure and greenwashing risk report
What is Greenwashing? How to Avoid Greenwashing?
The Asia Investor Group on Climate Change (AIGCC) and Client Earth jointly released a report to help financial market participants understand what is greenwashing and avoid it
SEBI Issues Consultation Paper on ESG Disclosures, Ratings and Investing
The Securities and Exchange Board of India (SEBI) issued a consultation paper to solicit opinions on the ESG disclosures of listed companies, the ESG rating of the securities market and the ESG investment in the asset management industry, so as to promote a more transparent and simplified development
French Regulator AMF Proposes Anti-Greenwashing Measures for ESG Funds
The French regulator AMF issued a document recommending that the minimum environmental standards be included in the classification of ESG funds under SFDR to reduce the possibility of greenwashing