FMA to weed out green washing
Financial Markets Authority chief executive Rob Everett fund managers promoting their funds as "green" or using ESG principles will need to prove that they do what they say.
"We want to take a look at investments branded as green or ESG," he told an audience in Auckland last week. "Like everywhere else, we’re seeing greater demand from investors for these types of investments. We also see the focus on how the finance sector can assist in shifting the global economy to a more sustainable footing."
"Part of our work here is about ensuring people understand what they’re investing in and that they get what’s labelled on the tin. Just calling a product green or responsible, or labelling it sustainable finance without any proof or any sort of contractual commitment risks a mis-selling charge."
"We are mindful of the MBIE/MfE consultation on climate-related disclosures, and wherever that lands we will be looking to ensure that listed issuers consider the risks (and opportunities) to their business models and profitability from climate change."
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