“Currently, we do not have a European definition of what greenwashing is in the financial sector,” states France Vassaux, partner lawyer at Simmons & Simmons. This term has been used since the 1980s, sometimes incorrectly, to denounce “the misleading use of arguments claiming good ecological practices in marketing or communication operations” (Le Larousse).
This is partly explained by the fact that “the regulatory framework for what sustainable finance is is very recent,” the lawyer notes, adding that “the first text published on sustainable finance dates back to November 2019 and came into effect on March 10, 2021.”
To date, “greenwashing is most often about presenting information (...) that does not correspond to reality.” However, sanctions ranging from “20,000 euros for individuals and up to 100,000 euros for legal entities” are possible!
To avoid being accused of greenwashing, companies must prove their commitment and eliminate any doubts: “The more I commit to a path where I want to be as demanding as possible regarding ESG (...) the more transparent I must be, the more information I must provide,” concludes France Vassaux, asserting that while this is still recent, progress is being made to regulate greenwashing.
If you want to deepen your knowledge on this topic: https://www.airzen.fr/greenwashing-comment-redonner-confiance-dans-les-entreprises/
