Painting pollution green with a highlighter

Global securities regulators issued a call to industry trade groups and standards setters to join the fight against greenwashing.

The International Organization of Securities Commissions (IOSCO) said it will engage with both financial industry associations and voluntary standards-setting organizations to promote the implementation of “good practices” among asset managers, ESG rating agencies and data providers to combat greenwashing and the threat of investor harm.

In a statement, IOSCO said it’s “committed to supporting the transition to a more sustainable economic model for capital markets.”

The group is seeking to combat threats to investor confidence in sustainable finance, which could, in turn, hamper efforts to combat climate change.

IOSCO noted that it has previously published recommendations that aim to improve sustainability-related corporate reporting, along with recommendations for practices, policies and disclosures in the asset management sector, and transparency and good governance of ESG ratings and ESG data.

“It is therefore critical that asset managers now push forward to improve sustainability-related practices, policies, procedures, and disclosure in their industry and that ESG ratings and data providers improve the reliability, comparability, and interpretability of their ESG ratings and data products,” it said.