Business Green quotes Caroline Greenwell on the FCA's new sustainability disclosure regime
The FCA’s new rules to combat greenwashing which aim to protect financial services customers from ‘greenwashing’ claims come into force from today.
The new anti-greenwashing rule (AGR), which applies to all FCA-authorised firms, is designed to ensure that consumers are protected from misleading sustainability-related claims, enabling them to make informed decisions that are aligned with their sustainability preferences.
Caroline Greenwell, Partner, comments on the new rules for Business Green:
In the past, the majority of greenwashing allegations have featured consumer brands and their advertising and marketing. Whilst these cases have raised the spectre of greenwashing as an issue and brought about warnings and commentary from the Advertising Standards Authority which may well have been noted in other sectors, activity concerning greenwashing issues has undoubtedly been centred on the retail and food & beverage sectors.
These developments from the FCA could change all that. The new anti-greenwashing rule and guidance means that the risk of greenwashing no longer just concerns consumer brands, but now all FCA-regulated firms who make claims as to the sustainability characteristics of a product or service which they offer.
This could change the game on the scope of greenwashing risk, and depending on how active and draconian the FCA’s enforcement of their rule is we are likely to see a significant uptick in regulation and even litigation arising out of investment firms’ sustainability claims.
