UK financial watchdog Financial Conduct Authority (FCA) is “very keen” to tackle greenwashing.
“We are very keen to take enforcement action in relation to greenwashing,” FCA joint executive director for enforcement, Therese Chambers, told a news conference, as reported by Reuters.
“I am not in a position to disclose details at the moment, but please take that as a statement of intent.”
The statement comes after the FCA prepares for new restrictions for investment funds to avoid inflated sustainability claims.
The restriction, which was unveiled last year, will look at how certain sustainability-related terms – such as ‘ESG’, ‘green’ or ‘sustainable’ – can be used in product names and marketing for products which don’t qualify for the sustainable investment labels.
It also proposed a more general anti-greenwashing rule covering all regulated firms in a bid to avoid misleading marketing of products.
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FCA’s director of environment, social and governance Sacha Sadan said at the time that the proposed rules will “consumers and firms build trust in [the financial] sector.”
“Greenwashing misleads consumers and erodes trust in all ESG products. Consumers must be confident when products claim to be sustainable that they actually are,” added Sadan.
“This supports investment in solutions to some of the world’s biggest ESG challenges. This places the UK at the forefront of sustainable investment internationally. We are raising the bar by setting robust regulatory standards to protect consumers in line with our wider FCA strategy.”
