The US Securities and Exchange Commission is about to crack down on greenwash i investment products.

A report in the Financial Times notes that the US regulator is preparing rules to specify disclosures made by funds using currently undefined terms such as ESG or sustainable, and the move might have already been foreshadowed by the action SEC took against BNY Mellon over its ESG for certain funds.

Greenwashing has become a major global issue, one that the EU’s bungled attempts to create a taxonomy has done little to resolve. The UK too might fall into the same trap if some sources are correct in their predictions. The SEC will be aware of these issues and might be inclined to learn. It has a track record of being more direct in its approach to such matters.

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