EU faces Franco-Dutch call for rules to stop ‘greenwashing’ By Reuters

© Reuters. FILE PHOTO: An aerial view shows illegal deforestation close to the Amazonia National Park in Itaituba


By Huw Jones

LONDON (Reuters) – French and Dutch securities regulators called on Tuesday for European Union rules to prevent “greenwashing” or inaccurate claims that investments are sustainable and climate-friendly.

Several firms provide ratings on a company’s environmental, social and governance (ESG) risks that asset managers use to make “green” investment decisions.

The European Commission wants to boost sustainable investments and is due to publish an action plan in 2021.

The Dutch and French regulators made their joint call in a bid to persuade the EU executive to include proposals for rules for ESG raters in its package

“While their influence is expected to grow considerably, providers of sustainability-related services remain largely unregulated,” France’s AMF and its Dutch counterpart AFM said.

The EU’s European Securities and Markets Authority (ESMA) should become the regulator for ESG ratings firms, they added.

“The proposed framework is aimed at preventing misallocation of investments, greenwashing, and ensuring investor protection.”

ESMA’s chair Steven Maijoor has said that supervision of ESG ratings was “far from optimal” due to a lack of clarity on the methodologies that underpin ratings.

Sustainable finance is growing rapidly, and the EU is keen to increase “green” investments to help its economy recover from the impact of the COVID-19 pandemic.

Any decision to propose EU rules to regulate ESG ratings would be up to its executive body, the European Commission.

The bloc is introducing rules for asset managers on ESG disclosures in March, along with a “taxonomy” to provide clear legal definitions on sustainability that will make greenwashing far harder, a European regulatory official said.

“It requires financial market participants to report on sustainability factors and impact, which pretty much automatically pushes them to dependence on these ratings and data,” the official said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by : Reuters

Source link

Capital Media

Read Previous

OPEC’s President Says Oil Cartel Cannot Rush Output Increases By Bloomberg

Read Next

plus de 100 millions de dollars pour réaliser la transformation numérique du secteur agricole