Anti-greenwashing rules finally go live

Impact on companies Propelled by the new rules, PwC predicts that assets in sustainable investment products in Europe will jump more than threefold to reach €7.6tn by 2025. The number of ESG funds is expected to outnumber conventional funds, as asset managers rush to make their products greener to attract investors. PwC’s Carré predicts this transformation of Europe’s investment industry will have a dramatic effect on the companies in which fund managers invest, redirecting capital into sustainable activities and forcing businesses to be transparent about everything from their environmental impact to how they treat employees. “If an asset manager wants to promote that [it invests based on specific sustainability] criteria, that will have impact on investments and that has an impact on capital flows and available financing for companies.”