The Reserve Bank of India is looking to address the risks of greenwashing in financial services to boost market confidence on Environmental, Social and Governance (ESG) credentials.
While the number of investment products marketed as ‘green’ or making wider sustainability claims is growing, exaggerated or unsubstantiated claims about Environmental, Social and Governance (ESG) credentials damage confidence in these products, RBI said.
Greenwashing is all about making misleading claims about ESG credentials to make consumers wrongly believe that a product is eco-friendly or has a positive environmental impact than they actually do.
The regulator on Thursday announced that it would be participating in a virtual TechSprint, hosted on the UK Digital Sandbox, which would bring together international regulators, firms, and innovators to address sustainable finance as a collective priority.
RBI is inviting all India based firms who are interested in participating in the TechSprint to apply. The application window is open and will close on May 21.
As many as 13 international regulators will be taking part in the Global Financial Innovation Network (GFIN)’s first ever Greenwashing TechSprint. The TechSprint aims to develop a tool or solution that can help regulators and the market effectively tackle the risks of greenwashing in financial services.
Source Name:Economic Times