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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