Can New Regulations Solve Greenwashing Concerns in Sustainable Finance?

Ankit16 Aug, 2024Business

Our founder, Christoph M?ller, aptly points out that sustainability is a broad concept lacking a universally accepted definition applicable to financial markets. This ambiguity has led regulators to focus on process-level requirements and controls. While regulations like the EU Taxonomy and SFDR are steps in the right direction, defining the processes Financial Market Participants (FMPs) must follow to label investments as ?sustainable,? it?s debatable whether this approach is sufficient to prevent greenwashing.