Navigating the landscape of impact investing
Will regulators step up scrutiny of ‘impact-washing’?
The practice of making misleading impact claims (so-called “impact washing”) carries increasing risks.
In a sign that regulators are taking the problem seriously, the three European Supervisory Authorities (ESAs) launched a Call for Evidence on greenwashing4 which questions, among other issues, the risk of impact washing. Early June, the ESAs published their Progress reports5 in response to this consultation. In particular, the European Securities and Markets Authority (ESMA) has been assessing which areas of the sustainable investment value chain (SIVC) are more exposed to greenwashing risks – with key focus on misleading claims related to…
