In a bid to clamp down on greenwashing, the Financial Conduct Authority (FCA) is proposing a package of new measures including investment product sustainability labels and restrictions on how terms like ESG, green or sustainable can be used.
The measures are among several potential new rules aimed at protecting consumers and improving trust in sustainable investment products.
The move follows recent growth in the number of investment products marketed as green or making wider sustainability claims. Exaggerated, misleading or unsubstantiated claims about environment social and governance (ESG) credentials damage confidence in these products, stated the regulator.
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