Finding a universal definition of greenwashing

As the number of sustainable investment products grows, the European Securities and Markets Authority seeks to define the term ‘greenwashing’

Last week, the European Securities and Markets Authority published its sustainable finance roadmap for 2022-2024, which sets out its priority areas and actions for the next three years. Many in the industry have welcomed the regulator’s move, which would harmonise the interpretation of rules across the EU and reduce the risk of regulatory arbitrage. The implementation of Esma’s plans, however, is likely to run into practical obstacles.