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European securities regulators are expected to ramp up enforcement activity against alleged greenwashing, according to a new report.

The three major European regulators — the European Securities and Markets Authority (ESMA), the European Banking Authority, and the European Insurance and Occupational Pensions Authority — all published reports on greenwashing in the sectors under their oversight.

Each report looks at the state of regulatory action against greenwashing — firms making misleading claims about the green credentials of their products and services — in the respective segments of the financial industry, and how the regulators expect sustainability-related supervision to be enhanced in the years ahead.

In its report, ESMA said combating greenwashing is a top priority for securities regulators, which are ramping up efforts to “monitor and detect greenwashing and to critically scrutinize sustainability-related claims in various sectors.”

“Effective and consistent supervision of sustainability-related claims is critical to investor protection and a trustworthy environment for ESG markets,” said ESMA chairwoman, Verena Ross, in a release.

Ross said ESMA will continue to push “convergent and effective supervision” among regulators, and called on the industry to avoid greenwashing.

“I would also like to remind all market players of their responsibility to avoid making unsubstantiated sustainability claims and to communicate any sustainability-related information in a manner that is fair, clear and not misleading,” she said.

In its report, ESMA also sets out its priorities for enhancing regulators’ scrutiny of sustainability-related claims, including investing in supervisory tools and expertise, intensifying their focus on greenwashing risks in their compliance work, and undertaking joint compliance actions.

“Supervisors’ ability to challenge sustainability-related claims is expected to grow in the next years as their expertise deepens,” the report said.

ESMA said it may also produce added guidance focused on high-risk areas of greenwashing, and it called on European policymakers to bolster regulators’ mandates in certain areas, including their access to data, benchmark oversight, and boosting investor education.