ESMA proposes anti-greenwashing improvements to Sustainable Finance Framework
Main suggestions include strengthening the EU Taxonomy, expanding ESG fund labelling and better defining transition investments.
The European Securities and Markets Authority (ESMA), Europe’s financial regulator, has published a set of recommendations to ensure the EU’s Sustainable Finance Framework prevents greenwashing.
While recognising that the framework, a legislative package aiming to incentivise private investment in the transition to a green economy, is a global “pioneer”, the Authority believes it could be further improved to increase coherence and usability, as well as to prevent greenwashing.
