There are plans to introduce all-European rules that will limit the risk of ‘green washing’ of financial products and services that are offered as sustainable or environmentally friendly while they are not.
The new regulation requires institutional investors, such as asset managers or insurance companies, to disclose the social and environmental impact of their investments. The rules must lead to the sustainability of the financial sector.
These are the EU Member States and the European Parliament agreed. According to EU parliamentarian Paul Tang (PvdA), the new rules require a change in mentality among large investors.
They require institutions to look further than profit and return alone. Investing in a sustainable and just society is also the responsibility of the men and women of the big money. The transparency rules make it easier for investors to invest in sustainable projects.