RBI to participate in UK Sandbox to tackle ESG Greenwashing

The Reserve Bank of India plans to combat greenwashing in financial services, where exaggerated or unproven Environmental, Social and Governance (ESG) claims can damage market confidence in such products. Greenwashing involves making misleading statements about a product’s positive environmental impact or ESG credentials. To address the issue, the regulator plans to participate in a virtual TechSprint event, which will bring together international regulators and firms to develop new tools to tackle greenwashing in financial services.