The Financial Conduct Authority is threatening to fine capital-raising firms that make misleading environmental claims and wants to start regulating the outside consultants that “verify” their green credentials.
The FCA is considering the case for enforcement action against bond issuers making inaccurate environmental claims in prospectuses or other advertising, in an attempt to clamp down on greenwashing.
It has become increasingly concerned about the accuracy of claims made for the booming business of “ESG badged” bonds, through which more than $1tn was raised last year.
