10.5 Transparency as a Key Factor in Preventing Greenwashing
Creating transparency at the company, product, and sales or distribution levels is an essential factor in avoiding greenwashing. Creating transparency along the value chain ensures that the sustainability characteristics of investment products meet investor expectations. It also leads to reliable, comparable, and verifiable information. Such information has become even more important due to the new requirements for financial service providers: Financial service providers are expected to contribute to the transition by developing a clear plan for aligning their portfolios – whether on the investment or financing side – toward a net-zero pathway. Transparent reporting on the achievement of sustainability goals, especially climate goals, forms the basis for this but requires meaningful data from across the whole economy.