Regulators are coming for banks accused of ‘greenwashing’ – it’s about time
For investors who like companies trying to fight climate change, this onslaught by regulators is better late than never, writes David Callaway
Global banks and fund managers have been put on notice that their popular environmental, social and governance (ESG) investment products face regulation for the first time in their five-year history. It’s about time.
At least three investigations were reported in the last month in the US and Germany against major banks for misleading filings and marketing information around their ESG products, including at Goldman Sachs’s asset management business last week.
The US Securities and Exchange Commission (SEC), which is preparing new rules on climate disclosure among American companies and financial firms, is probing Goldman. That follows a fine of $1.5m against BNY Mellon last month for misleading claims about its sustainable products.
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