A stable, well-functioning financial market for allA stable, well-functioning financial market for allFinansinspektionen’s strategy to prevent greenwashing
FI’s strategy for preventing greenwashing in the financial sector aims to safeguard the trust in sustainable investments and a sustainable finance market.
The combination of rapidly increasing demand for sustainable financial products and the ongoing development of regulations for this market can lead to firms describing their operations and products as more sustainable than what they are in practice – so-called greenwashing.
Consumers and investors may be misled to invest in products that do not meet the investor's expectations and requirements from a sustainability perspective. In turn, this could undermine the trust in sustainable financial products. In the long run, this could prevent capital from being channelled to investments that support the transition to a sustainable economy.
FI's strategy for preventing greenwashing in the financial sector aims to safeguard the trust in sustainable investments and a sustainable finance market. Safeguarding a financial system that is characterised by a high level of confidence is part of our fundamental mandate, as is safeguarding a stable financial system that contributes to sustainable development and good consumer protection.
In our work with a sustainable finance market, we have identified a number of prioritised areas. Preventing the risk of greenwashing in the financial sector is one of them. FI will prioritise the following areas in our work to prevent greenwashing:
- Implement new rules and maintain a dialogue and communication with the industry
- Improve access to sustainability-related information
- Improve transparency about ESG ratings and ESG data suppliers
- Improve disclosures regarding sustainable financial products
- Follow up on information provided in conjunction with financial advice
- Integrate sustainability factors into our authorisation process
- Build capacity in the area of sustainable finance
- Cooperate internationally in task groups on this topic.
FI will work to reduce the risk of greenwashing both through preventive measures and supervision activities. We will also prioritise the work on international collaborations on the prevention of greenwashing.
