Asset Managers Told They Face Penalties for ‘Greenhushing’ (2)

Europe’s markets watchdog says fund managers are as likely to be penalized for deliberately understating their ESG efforts as they are for overstating them.

In other words, “greenhushing,” as the phenomenon has come to be known, can be as bad as “greenwashing,” according to Patrik Karlsson, senior policy officer for investment management at the European Securities and Markets Authority. That includes the possibility of fines, he said in an interview.

The warning comes as ESMA joins forces with national authorities to probe how well asset managers are complying with the European Union’s ESG investing rulebook, the Sustainable Finance Disclosure ...