PensionsEurope supports the efforts of the European Commission and the ESAs to eliminate greenwashing. Greenwashing exists in the financial sector. The recent sustainable finance legislative framework helps decisively to reduce unsubstantiated ESG claims.
By nature, pension funds are long-term investors that have as their main objective the delivery of adequate pensions to their members and beneficiaries. We should make sure that the proposals are fit for the collective setting of pension funds, which in some countries are very different from individual retail investment products.
Regulation should allow for sufficient flexibility for pension funds’ boards to incorporate the relevant ESG and non-ESG considerations. However, the implementation of sustainable finance legislation should introduce a certain level of comparability. Given the recent implementation of legislation, supervisors should focus on correct and clear implementation, before considering expanding legislative and supervisory powers. Action on greenwashing should focus on parties seeking unfair competitive advantage. See more details in our position paper.
