In a joint letter signed by 92 organisations and 32 academics and experts, Finance Watch calls on the European Commission to respond to the expectations of EU citizens, retail investors, civil society, and financial stakeholders by offering sufficient safeguards to prevent greenwashing, notably by making the exclusion of companies developing new fossil fuel projects a minimum criterion across all SFDR product categories.
Over the years, several scandals have revealed the disconnect between the presence of such companies in funds that included sustainability messaging and the expectations of citizens and retail investors. As a result, national sustainable fund labels have been increasingly integrating related exclusions in order to remain credible.
This easily understandable and implementable criteria would significantly clarify the aims of the SFDR and help restore trust among retail investors.
We are keen to see this regulation evolve significantly to “restore trust in the market” and stop “bear[ing] significant greenwashing risks” (1). We therefore call on the European Commission to respond to the expectations of EU citizens, retail investors, civil society, and financial
stakeholders by offering sufficient safeguards to prevent greenwashing, notably by making the exclusion of companies developing new fossil fuel projects (2) a minimum criterion across all SFDR product categories (3).
Open letter to the European Commission - SFDR review
