Here's what the EU Commission needs to do to tackle greenwashing

The European Securities and Markets Authority ( ESMA ), the EU's financial markets regulator and supervisor, has published an opinion (available here) on a European regulatory framework for sustainable finance outlining possible long-term improvements. The opinion just published is relevant because the authority emphasizes that it is the last missing element in ESMA's response to the European Commission's request for a contribution to solving the greenwashing problem.

While the authority recognizes that the framework is already well developed and includes safeguards against greenwashing, it also believes that in the long term the framework could be further developed to facilitate investors' access to sustainable investments.

Overall, according to ESMA, the European Commission should focus on certain aspects in order to improve the regulatory framework for sustainable financing. First, before any legislative initiative is put forward, consumer and industry testing should be done to ensure that the policy solutions are suitable for retail investors.opinion of ESMA, more at esgnews.it)