Featured Product

    EC Seeks Input from ESAs on Greenwashing Risks

    August 15, 2022

    The European Commission (EC) is requesting inputs from each European Supervisory Authority (ESA) on the occurrence of greenwashing and related risks as well as the implementation, supervision, and enforcement of sustainable finance policies aimed at preventing greenwashing. The three ESAs are the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA).

    EC seeks input on greenwashing risks and the supervision of sustainable finance policies by means of a progress and final report. The progress reports from ESAs should take stock of the work undertaken to date, focusing on how greenwashing is understood and where it may materialize, actions taken, and tools developed to ensure adequate monitoring of greenwashing risks and early supervisory challenges in monitoring the application and enforcing new policies. The final reports should build on the findings of the progress reports and complement them, for instance, by providing examples of greenwashing cases and assessing their impact on the financial market, by assessing supervisory measures, supervisory obligations and powers related to fighting greenwashing cases and addressing greenwashing risks, and by assessing implementation of policies aiming at preventing greenwashing and addressing greenwashing risks. These progress reports and final reports are to be submitted in 12 months and 24 months respectively.

    The inputs should also provide an overview and assessment of supervisory practices, experience, convergence, and supervisory capacities related to the prevention of greenwashing through available tools and powers at the time of this request. This should include whether existing tools and data are sufficient to adequately monitor and address greenwashing. EC seeks the input of ESAs with regard to supervision and enforcement both from a legal and a practical point of view. While the ESAs should accurately present the specificities of the respective sectors in their remit, the approach and basic structure of the reports should be coordinated among the ESAs to allow a certain degree of comparability across the reports and their findings. The reports should be accompanied by a shared summary of key horizontal aspects across all three reports. Based on these reports, EC will assess and monitor greenwashing risks in the financial market while the implementation of key policies is ongoing and will consider whether further steps are necessary for effective supervision and enforcement in this area and whether potential amendments to the existing rulebook are needed. 

     

    Related Link: Call for Advice (PDF)

     

     

    Keywords: Europe, EU, Banking, Greenwashing, Sustainable Finance, Disclosures, ESAs, ESG, Basel, CRR, SFDR, Taxonomy Regulation, CSRD, EC

    Featured Experts
    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699