Securitisation and Regulation News

ESAs issue Call for Evidence on Greenwashing

On 15 November 2022, the European Supervision Authorities (ESAs) published a Call for Evidence on greenwashing. The aim of the Call for Evidence is to get a clearer and more comprehensive idea of the market definition and the possible levels and types of greenwashing. The focus is on all financial companies under the supervision of the ESAs whose corporate culture, services or products are related to sustainability aspects, as well as all other stakeholders (investors, consumer associations and NGOs or academic institutions). The approach should lead to targeted legislative texts.

The core of the Call for Evidence is the question of concrete practical examples of greenwashing, which are to be presented in detail. The questionnaires regarding possible definitions, types and levels of greenwashing are very detailed. However, asking the market to report observed or practised greenwashing to the regulatory authorities is a remarkable approach.

The TSI is currently considering the relevance of the Call for Evidence regarding securitisation. The answer depends, among other things, on the results of the current trialogue negotiations on the European Green Bond Standard (see also news of 14 October 2022). This is because the application of the use-of-proceeds approach at the originator level is likely to lead to a different assessment with regard to greenwashing compared to the application at the SSPE level.

Submission of feedback is possible until 10 January 2023. TSI invites market participants to participate and comment.

ESAs Call for evidence on better understanding greenwashing