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RBI Invites Businesses To Take Part In TechSprint's Greenwashing

By Outlook Planet Desk May 13, 2023

An increasing variety of investment products are being branded as "green" or making more general sustainability promises

RBI Invites Businesses To Take Part In TechSprint's Greenwashing
RBI will be participating in a greenwashing TechSprint.
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The Reserve Bank of India will be one of the 13 foreign regulators taking part in the first-ever Greenwashing TechSprint of the Global Financial Innovation Network (GFIN). GFIN, which is now led by the Financial Conduct Authority, is a coalition of more than 80 international institutions devoted to promoting financial innovation in the best interests of consumers. 

"RBI as a participating member is inviting firms from India to participate in this Greenwashing TechSprint," the central bank said in a statement.

 Growing numbers of investment products are being branded as "green" or making more general sustainability promises. 

 Exaggerated, false, or unsupported claims about an item's Environmental, Social, and Governance (ESG) credentials reduce customers' and businesses' trust in it, according to the RBI, which wants to make sure that items live up to their sustainability claims.

"RBI will therefore be participating in a virtual TechSprint, hosted on the FCA’s Digital Sandbox, to bring together international regulators, firms, and innovators to address sustainable finance as a collective priority," the central bank said. 

A tool or solution that can assist regulators and the market in successfully addressing the dangers of greenwashing in financial services will be created as part of the TechSprint.

All Indian businesses interested in taking part in the TechSprint are invited by the RBI to submit an application by May 21.

Firms would have the chance to collaborate with regulatory experts, a range of stakeholders, and specialists from around the world, it was said.

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