Efforts to Combat Greenwashing Strengthened

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Efforts to Combat Greenwashing Strengthened

Posted by: Baris Karapinar
Category: ESG News

The Federal Department of Finance (FDF) is taking steps to address greenwashing, a practice where misleading information about the environmental impact of financial products is given. During the meeting on October 25, 2023, the FDF informed the Federal Council of its plan to put the Federal Council’s anti-greenwashing stance into action.

In December 2022, the Federal Council outlined its strategy to combat greenwashing in the financial sector. In line with this, the FDF, along with experts from the Federal Department of the Environment, Transport, Energy and Communications (DETEC), the Federal Department of Economic Affairs, Education, and Research (EAER), the Swiss Financial Market Supervisory Authority (FINMA), the banking industry, and non-governmental organizations, was tasked with finding the most effective way to implement these guidelines.

After careful consideration of feedback from the working group, the FDF has chosen to propose principle-based state regulations at the ordinance level to bring the Federal Council’s vision to life. This framework may be complemented by industry self-regulation. The FDF aims to present a consultation draft to the Federal Council no later than August 2024. However, if the financial industry devises a self-regulation strategy that aligns with the Federal Council’s goals, further state regulation may not be necessary. This effort is a significant step towards ensuring transparency and integrity in the Swiss financial sector.

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