EU: Commission asks ESAs for input on greenwashing risks and supervision of sustainable finance policies

The European Commission has asked the European Supervisory Authorities (ESAs) – i.e. the EBA, ESMA and EIOPA - for input on greenwashing risks and the supervision of sustainable finance policies. 

In particular, the ESAs have been asked to focus on how greenwashing may materialise, actions taken and tools developed to ensure adequate monitoring of greenwashing risks, and supervisory challenges in monitoring the application and enforcement of new policies. 

The Commission has requested progress reports 12 months after the date the request was sent and the final reports 24 months after the date of the request (the request letter is dated 16 May 2022). 

Based on the ESAs' input, the Commission will consider whether further steps are necessary for effective supervision and enforcement of greenwashing risks. 

For more information, see the Commission’s request for input.