EU agrees on new rules to counter investment 'greenwashing'

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The European Union agreed on Thursday on a new law that forces asset managers, i...

FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves Herman/File Photo

The law is meant to spur green investment and to curb “greenwashing”, a practice whereby companies claim to be more environmentally friendly than they really are. “The EU is today setting out a transparency framework to make sure that investors are well informed of the environmental and social impact of their investments,” said Eugen Teodorovici, Minister of Finance for Romania, which currently holds the EU presidency.

Financial managers will have to disclose, for instance, investments in assets that could pollute water or damage bio-diversity.

 

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