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Faced with growing concerns about greenwashing, European Union regulators are considering a major overhaul of the rules governing sustainable investments. These changes aim to provide investors with clearer information and eliminate deceptive practices that exaggerate the environmental impact of financial products.
The ambiguity surrounding so-called « sustainable » investment funds may soon come to an end. The European Commission is currently reviewing the Sustainable Finance Disclosure Regulation (SFDR) to combat deceptive sustainability practices. Articles 8 and 9 of the SFDR, intended to define the characteristics of sustainable financial products, are deemed too complex and sometimes fraudulently used for greenwashing purposes.The regulators' proposals include the creation of two new categories of financial products, aimed at making their investment strategies more legible. The classification could take the following form:- « sustainable products », meeting stringent sustainability criteria from now on,- « transition products », currently evolving towards long-term sustainability criteria.To improve transparency, a sustainability indicator could be introduced. This tool will allow classifying various supports, including investment funds, based on their environmental impact. Its aim is to eliminate the current ambiguities that facilitate misleading business practices.
The final report of the European Securities and Markets Authority (ESMA), published in June 2024, presents an analysis of the risks of greenwashing and proposes recommendations to improve the supervision and transparency of sustainable financial markets. The key actions suggested include:- Enhanced supervision: EU regulators aim to step up their efforts to ensure investor protection and market integrity in the face of greenwashing risks, adopting a risk-based approach.- Increased resources and expertise: National Competent Authorities (NCAs) need to bolster their human resources and sustainability expertise through training, recruitment and collaborations with national agencies and NGOs.- Easier access to data: Transparency of high-quality data is essential for effective supervision. NCAs are exploring the use of advanced technological tools (SupTech) to improve their efficiency.- A gradual approach: Institutions wish to support market players in implementing the new regulatory framework, while taking strict measures in the case of major breaches.- Transparency in penalties: NCAs are encouraged to make public penalties imposed for greenwashing, to deter deceptive practices and bring clarity to market actors' expectations.A few weeks ago, the European securities regulator (European Securities and Markets Authority, ESMA) warned that standards for achieving sustainability would soon be better defined, with a requirement for each fund to hold at least 80% in assets meeting environmental, social and governance (ESG) criteria. These new proposals respond to criticisms voiced by consumer associations, like UFC-Que Choisir in France, regarding the difficulty in understanding investment fund strategies and the resulting greenwashing risks. The final decisions are now in the hands of the European Commission.
C'est pas trop tôt! Trop d'investisseurs se font avoir par des produits soi-disant verts.
Les investisseurs ont besoin de clarté et de transparence. Hâte de voir comment les nouvelles règles vont impacter le marché.
En voilà une bonne nouvelle ! Ça commençait à être compliqué de démêler le vrai du faux, avec la perte de confiance associée...
Enfin, des mesures concrètes pour arrêter cette mascarade de greenwashing ! Espérons que ce coup de frein va vraiment nettoyer le secteur et qu'on puisse faire confiance aux labels "verts".
Pour une fois qu'ils essayent de protéger les petits investisseurs, on ne peut que s'en réjouir, non ? Ces nouvelles mesures sur la lisibilité et la transparence, c'est exactement ce qu'il fallait. Espérons juste que ça ne restera pas que sur le papier.
