On 5 May 2023, the European Securities and Markets Authority (ESMA) published a speech by Natasha Cazenave (Executive Director, ESMA) entitled ESMA’s role in enabling the transition to a low carbon economy. The speech focuses on what ESMA is doing to contribute to an orderly transition to a low carbon economy.
Among other things the speech notes that there is a clear need to step up ESMA’s efforts to combat the risk of greenwashing. It also mentions that in parallel there could be merit in exploring whether labels could help better channel savings according to investor needs and preferences and therefore support an orderly transition. In coordination with the other European Supervisory Authorities, ESMA is carrying out a thorough analysis of the greenwashing phenomenon. It will deliver a Progress Report at the end of May 2023 and a Final Report in May 2024 which will present the results of its findings regarding greenwashing risks and their drivers, and the associated financial risks.