EU Targets Greenwashing, Financial Risks in Strategy Draft (1)

The European Union will put in place tighter measures on banks and credit rating agencies in an effort to prevent “greenwashing” and to reduce systemic risks from climate change, according to a draft document seen by Bloomberg.

The “Strategy for Financing the Transition to a Sustainable Economy,” due to be unveiled by the European Commission next week alongside a rulebook for green bonds, will propose tightening reporting requirements for financial entities and incorporating climate-related risks into credit ratings and bank capital requirements.

“The Commission will reflect sustainability risks in financial reporting standards and accounting,” the document said. “The Commission will ...