28 May 2024

Breaking news – Sustainable Finance

What’s new in sustainable finance?

The Financial Conduct Authority’s new anti-greenwashing rule, effective from May 31, 2024, mandates that all FCA-authorised firms’ sustainability-related claims about products and services must be fair, clear, and not misleading. This rule, part of the broader Sustainability Disclosure Requirements (SDR), applies to all communications about financial products or services that reference environmental or social characteristics, ensuring consistency with the product’s sustainability profile.

In his speech at the Festival dell’Economia di Trento, Piero Cipollone, ECB Executive Board member, highlighted the urgency of addressing climate change's economic impacts and the necessity of substantial investments for the green transition. He emphasized the ECB's role in supporting this transition through its monetary policy, banking supervision, and collaboration with policymakers, while stressing the importance of coordinated efforts across Europe to ensure sustainable economic growth.

The French Central Bank published an analysis of the latest NGFS scenario report. At the end of 2023, the Network for Greening the Financial System (NGFS) updated its climate scenarios, emphasizing that an early transition, although costly in the short term, is preferable to inaction, which is harmful in the long term. This blog post details the impacts for France, including scenarios for an orderly transition and the associated economic and climate risks.