The Financial Markets Authority (AFM) has published guidance on sustainability claims. The rules should ensure that financial companies and pension providers communicate about sustainability transparently, factually and not misleadingly.
Sustainability claims are increasingly part of marketing and communications in the financial sector. Banks, insurers and pension providers advertise ‘green’ products, sustainable investments and socially responsible strategies.
How reliable are these claims? To protect consumers and investors from being misled, the Financial Markets Authority (AFM) published guidance on sustainability claims.
The guidance contains guidelines for financial institutions and pension providers and states that sustainability claims:
- Correct, representative and up-to-date: claims should not contradict other information and should paint the full picture.
- It must be concrete and well-substantiated: vague terms or empty promises are not allowed; claims must be based on verifiable facts.
- It should be understandable, appropriate and findable: complex jargon and misleading suggestions should be avoided.
The AFM points out that misleading sustainability claims can damage confidence in the industry and distort competition.
This guidance will give companies tools to put their communications in order and avoid legal problems
In addition to this new AFM guidance, companies can also fall back on the Advertising Code for Sustainability Claims (RDC), which is part of the Dutch Advertising Code.
Good Law stresses importance of clear rules
Good Law sees this guidance as a necessary step to combat greenwashing. Companies should handle sustainability claims with care, especially as regulations and enforcement become stricter, and, let that be paramount, sustainability is a proprietary interest!
For more information, see also:
AFM Guidance on sustainability claims
