FCA's intervention on green claims is 'welcome step forward'

International law firm RPC says there are concerns due to lack of regulation of ESG credentials in investment products

Commenting on yesterday's announcement by the Financial Conduct Authority that it intends to crack down on "greenwashing", RPC partner Chris Ross, who specialises in commercial, banking and fraud disputes, said: 

"Concerns have been apparent in the market for some time that products labelled as “green” or "sustainable" in fact had ESG credentials that were questionable at best, driven in large part by the lack of regulation in this area. 

"The FCA's intervention is therefore a welcome step forward in this area in clarifying how firms should label their products. 

"To what extent consumers and investors are prepared to prioritise genuinely ESG-compliant products over more traditional investments that may offer higher returns remains to be seen."