IOSCO*: Regulators Must Tackle "Severe Risk" of Greenwashing

* International Organization of Securities Commissions

According to the Financial News, Martin Moloney, secretary general of the International Organization of Securities Commissions (IOSCO) is urging regulators to tackle rising concerns of greenwashing. "It's not always driven by a desire or an intent to deceive people," he said at a recent industry event. "But that only gives you so much consolation, because the fact is that greenwashing is very widespread." Moloney was referring to inflows into investments with a focus on environmental, social, and governance (or ESG) factors. Financial markets need to develop common standards to provide consistency for issuer information, Moloney said, noting IOSCO is working with the International Sustainability Standards Board to help develop a disclosure framework. "You have a clear three-to-four-year gap, potentially a slightly longer gap, in which greenwashing will continue to be a severe risk in financial markets," he warned. Click below to the article.