IOSCO identifies recent developments in investor education on sustainablefinance, with a view to enhancing investor education and protection and supporting the sounddevelopment of this growing financial market.
The report on Retail Investor Education in the Context of Sustainable Finance Markets and
Products indicates that securities regulators have increasingly focused on whether sustainable
finance claims are accurate and if investors have the information they need to evaluate
sustainable finance products. To make informed decisions, retail investors need to understand
the characteristics of such products.
Accordingly, the report identifies some of the main challenges and sound practices for
developing educational content on these matters, informing investors of the features and risks
of sustainable investments and fostering educational activities that create the conditions for
better protecting and informing retail investors on the opportunities and risks related to
sustainable finance products.
The report describes educational activities that regulators should consider, taking into account
the level of sustainable finance and retail investor participation in their markets. This includes,
for example:
• explaining to retail investors how to obtain sustainability-related information and to
search and understand whether the offered product(s) matches their sustainability-
related preferences; and
• supporting initiatives of market participants to help retail investors understand ESG
certifications, labels and scores regarding the financial products offered to individuals
and encouraging and/or facilitating training that helps financial advisors better
understand greenwashing and how to protect investors against unsubstantiated or
misleading sustainability claims.
IOSCO
© IOSCO
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