Combating greenwashing in the fund industry

Fund industry associations have advised the European Union’s markets’ watchdog that greenwashing must not be defined in legislation due to worries that doing so would complicate a sector that is “in constant movement.” Many ventures claiming to be climate-friendly have received billions of dollars, but there have been few penalties for greenwashing or overstating one’s environmental credentials.

In order to prevent greenwashing, the sector must:

  • Lessen its reliance on outside data
  • Make anti-greenwashing laws applicable to all businesses
  • Use innovative procedures and resources to combat greenwashing

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