EU prepares to turn the screw on asset managers over greenwashing



Simon Jessop, Kate Abnett | Reuters

Under a suite of new EU finance rules due to be rolled out in stages, beginning on March 10, firms including fund houses, insurers and pension funds that provide financial products or services in the European Union will have to begin disclosing how sustainable they really are.

The new EU legislation, called the Sustainable Finance Disclosure Regulation (SFDR), aims to help drive 1 trillion euros ($1.19 trillion) into green investments over the next decade, iron out the patchy climate-related information currently provided by financial market participants, and give firms with genuinely sustainable products an edge.

“The crucial point is that this covers any entity or financial product,” said Lucien Firth, a partner at law firm Simmons & Simmons. “It doesn’t matter if you market all of your products as sustainable or none of them – it covers all of them.”

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