The Financial Conduct Authority, our governing body, has proposed a new package of measures to restrict how lenders and providers can label products and services using terms such as “green “ESG” and sustainable”. This is to clamp down on the number of mis-leading claims with regards to green credentials that lenders may be offering.
Greenwashing is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organization’s products, aims and policies are environmentally friendly.
Critics of the practice suggest the rise of greenwashing, paired with ineffective regulation, contributes to consumer scepticism of all green claims, and diminishes the power of the consumer to drive companies toward greener manufacturing processes and business operations.
While greenwashing is not new, it has increased in recent years to meet consumer demand for environmentally friendly goods and services.
The full article can be read here
We will monitor the report’s findings and ensure that our lender panel and their products continue to meet the needs of our clients, in line with our ongoing Consumer Duty procedures.
Our own business ESG strategy is monitored using Eevery. This software allows us to monitor, measure and improve our ESG performance. As part of our continued commitment to our clients, we have negotiated a discount for our clients who sign up to Eevery. If you would like more information on this, please get in touch here