There are various definitions of greenwashing, but in the EU the ESAs have provided a common understanding of what this means.
Being a practice where sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services.
The European Securities and Markets Authority (ESMA) and the UK’s Financial Conduct Authority (FCA) have therefore taken action, with the aim that fund managers are, amongst other things, acting honestly and fairly when marketing sustainable funds to investors.
