L’EBAL’Europe and whichESMAEuropean Supervisory authorities, emphasizing the importance of high-level common definitions of green washing in the financial sector. All three have published their final report and concluded that “Endorsement statements, representations, actions or communications do not clearly and accurately reflect the underlying endorsement profile of the financial institution, product or service.“. The result is that consumers, investors and other market participants can be misled, so it reiterates the duty of providing supporting information “accurate, clear and not misleading”.
Last December, Eiopa launched a review of its views on insurance and pensions, which had been launched a year earlier by three supervisory bodies.
Regarding the so-called green washing in the insurance and pension sector, Eiopa highlights that, with the increase in demand for support, insurance and pension providers “receive more business models that are environmentally friendly and provide consumers with sustainable options.”
While this change may be a positive step for the net-free economy, it poses the risk of going green, which is when financial services providers offer themselves are their products seem more durable than they really are.
That is why EIOPA is launching a plan to strengthen oversight and improve the regulatory framework for sustainable finance. In concluding the final report, Eiopa publishes its opinion on corporate sustainability claims and greenwashing, along with four important principles that local authorities should keep in mind when evaluating corporate sustainability claims:
Principle 1: The supplier’s endorsement must be fair and accurate and must accurately represent the profile of the supplier and/or its products.
Principle 2: Persistence must be supported by clear arguments, facts and methods.
Principle 3: Declarations of support and related support must be accessible to those involved who speak to them.
Principle 4: Any supporting statements will be updated and any relevant changes will be posted promptly and clearly.
Finally, as part of the constitutional amendment, Eiopa has also reviewed the implementation of the law requiring approval and recommending improvements to the current law.by identifying non-life insurance products with sustainable characteristics and following a consumer-friendly approach to the Insurance Distribution Directive (IDD)”.