In May 2022, the European Commission (EC) issued a “Request for input related to greenwashing risks and the supervision of sustainable finance policies” to three European Supervisory Authorities (EBA, EIOPA and ESMA - the ESAs).
The EC request also sought input on the definition of greenwashing in the financial sector, on the risks greenwashing can pose to investors and financial markets, on the implementation of sustainable finance policies aimed at preventing greenwashing, as well as on potential improvements to the regulatory framework.
Following feedback received from the 2022 request for input, the EBA, EIOPA and ESMA published their respective Progress Reports on Greenwashing on the Financial Sector (the Reports) on 1 June 2023.
The purpose of the Reports is to support a better understanding of greenwashing and to assess which areas of the sustainable investment value chain are more exposed to greenwashing risks.
