In a conversation with FT Adviser, William Charles, partner in the Litigation & Arbitration Group in Milbank LLP's London office, explores the problems with greenwashing in financial services, the potential for regulatory action to combat it, and what advisers should do to protect themselves against litigation in this area.
The prominence of Environmental, Social and Governance (ESG) factors has increased dramatically in recent years, particularly in the financial services sector. The evolution of ESG is unique in that speed targets have gone from voluntary standards to legal requirements.
In the UK the Financial Conduct Authority (FCA) has committed to enhancing both transparency and trust in ESG products as their prevalence continues to grow. Therefore, it is important for UK-listed companies and financial sector firms to review and manage their ESG-related disclosures.
