The Risk of Greenwashing

Greenwashing is the dissemination of false or misleading claims regarding environmental, social, and governance (ESG) credentials. This practice poses significant reputational, regulatory, and financial risks. While greenwashing is prevalent across various sectors, it is even a more critical risk for the financial sector. As financial institutions and capital market vehicles facilitate investments, their credibility is essential for ensuring that the environmental claims of their underlying investments are genuine and substantiated. Combating greenwashing has become a priority for the financial sector globally. Financial regulators worldwide are prioritizing the issue, adopting stricter measures to combat deceptive practices related to greenwashing.

So, what are the current trends and next advances in combating the greenwashing in the financial sector? How is the European regulation progressing to address this issue? What are some best practices and market lessons for financial institutions for managing the risk of greenwashing? And how can IFC support financial intermediaries to enable them to effectively deal with potential greenwashing risks?

To learn about this, please see the recording of our webinar from February 19.

Agenda