UK financial watchdog loosens greenwashing rules until April

Britain’s Financial Conduct Authority (FCA) is offering temporary leniency to investment firms for compliance with new ‘naming and marketing’ rules aimed at curbing greenwashing until April 2, 2025, it announced on Monday.

These rules, which took effect on May 31, require firms to ensure that references to environmental, social, and governance (ESG) sustainability in products are fair, clear, and verifiable.

Although the rules are set to be enforced starting December 2, the FCA urged firms to comply as soon as possible.

The extension provides extra time for firms, particularly those using ESG labels, to meet the high standards and prepare required disclosures for approval. Globally, trillions of dollars have flowed into ESG-labelled products, prompting regulators to impose stricter disclosure requirements.

Attribution: Reuters

Subediting: M. S. Salama