How the SFDR could look to consumers if it opens the door to greenwashing

Consumers want to save and invest their money sustainably, taking climate action while saving for the future in line with their values. However, the current rules for sustainable investment are very weak, allowing so-called ‘green’ products to invest in harmful activities like coal mining or oil drilling. Consumers end up being misled about their investment, which may be doing more harm than good when it comes to tackling climate change.

BEUC welcomes the significant improvements introduced by the European Commission’s proposal to review the Sustainable Finance Disclosure Regulation (SFDR).

However, it could open the door to greenwashing if the ‘Transition’ category of investments allows fossil fuel expansion activities. This imaginary investment brochure illustrates how that could look for consumers and provides solutions to prevent this from happening. 

Want to find out more? Watch our video on sustainable finance.