{"id":14212,"date":"2023-12-05T00:21:35","date_gmt":"2023-12-04T18:51:35","guid":{"rendered":"https:\/\/farratanews.online\/greenhushing-and-green-bleaching-blur-sanctions-targets-watchdog\/"},"modified":"2023-12-05T00:21:35","modified_gmt":"2023-12-04T18:51:35","slug":"greenhushing-and-green-bleaching-blur-sanctions-targets-watchdog","status":"publish","type":"post","link":"https:\/\/farratanews.online\/greenhushing-and-green-bleaching-blur-sanctions-targets-watchdog\/","title":{"rendered":"\u2018Greenhushing\u2019 and \u2018green bleaching\u2019 blur sanctions targets \u2013 watchdog"},"content":{"rendered":"
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The lack of a binding legal definition for greenwashing presents a hurdle to regulators tackling investment funds that exaggerate their sustainability credentials, a global securities watchdog said in a report on Monday.<\/p>\n
Trillions of dollars have flowed into funds that tout their environmental, social and governance (ESG) factors, but IOSCO, which groups securities regulators from across the world, said greenwashing was already being compounded by related “malpractices”.<\/p>\n
The report, based on a survey of IOSCO members to coincide with the COP28 U.N. climate summit in Dubai, said most jurisdictions do not specifically define greenwashing in legally binding provisions, it said.<\/p>\n
ESG CHEERLEADERS ARE SUDDENLY PIVOTING AND RUNNING FOR COVER<\/strong><\/p>\n Some regulators are already fining firms for greenwashing.<\/p>\n “While authorities have made efforts to adapt their supervisory practices and enforcement regimes to prevent and address greenwashing, it is still necessary to fully test the adequacy and effectiveness of these mechanisms,” IOSCO said.<\/p>\n Regulators face data gaps, concerns over the quality of benchmarks used to rate the ESG aspects of companies, and lack of consistent labeling of funds that threaten investor protection, IOSCO said.<\/p>\n