Greenwashing in the EU Financial Sector |
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Slovenia |
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(Europe)
Firm
Šelih & Partnerji Law Firm
Contributors
Nataša Pipan Nahtigal |
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| Does your jurisdiction have an explicit legal framework to identify, address and sanction greenwashing in the financial sector? If yes, is it enacted in a specialized law or addressed by other regulations (advertising law, consumer protection law,... | No, Slovenia does not have an explicit legal framework to identify, address and sanction greenwashing in the financial sector. Sustainability rules that apply to credit institutions, management companies, investment firms and issuers mainly derive from:
In this regard, please also note that Directive (EU) 2022/2464 is not transposed yet. In addition, provisions of the Consumer Protection Act that prohibit misleading advertisements and misleading commercial practices toward consumers may also apply in cases of greenwashing. |
| Is the relevant legal framework based on the EU or on the national legislation? | The relevant legal framework is based either directly on EU legislation or on national legislation that transposes the relevant provisions of EU legislation. |
| Is greenwashing, which may occur in the financial sector, addressed specifically and/or any differently from greenwashing in other sectors? | Yes. Greenwashing, which may occur in the financial sector, is addressed specifically, namely most of the sustainability-related requirements (e.g. regarding fair, clear and non-misleading information, and disclosures of non-financial information) apply only in the financial sector. |
| Does the current legal framework provide a definition of greenwashing? If yes, how it is defined, is the definition regulatory-binding? | No. |
| What are the main challenges legal experts see in addressing greenwashing in the EU financial/banking sector and what are the main challenges in implementing the existing regulatory framework to address greenwashing within the EU financial/banking... | There is a lack of a clear definition of “greenwashing”, which can result in various ambiguities with the application of general rules and concepts when addressing cases that might represent greenwashing. Further, there is also a lack of guidance on how to apply the general legal framework in order to address the specifics pertaining to the financial/banking sector. An additional issue is the factual background (including scientific and technical criteria that such requirements contain) and the pertaining lack of (reliable) data. The question is, how many obligations and also responsibilities to impose on the addressees of respective obligations since they are often organically dependent on data that they cannot obtain themselves or are unable to interpret and apply such requirements due to their technical and evolving nature. The specifics that apply in the financial sector cannot be addressed due to the lack of guidance. Adoption of appropriate guidelines would thus facilitate fulfillment of regulatory requirements for the respective addressees, as well as ensure a common approach by the various supervisory authorities that are engaged in cases of greenwashing. |
| Are there any relevant links to national legislation and/or guidance? | Market in Financial Instruments Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO7888 Companies Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO4291 Decision Amending the Decision on Business Operations of Management Companies: http://www.pisrs.si/Pis.web/pregledPredpisa?id=SKLE12855 Decision Amending the Decision on the Risk Management of Investment Funds: http://www.pisrs.si/Pis.web/pregledPredpisa?id=SKLE12856 Consumer Protection Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO7054 |
Greenwashing in the EU Financial Sector
Slovenia
(Europe) Firm Šelih & Partnerji Law FirmContributors Nataša Pipan Nahtigal
Updated 1 June 2023No, Slovenia does not have an explicit legal framework to identify, address and sanction greenwashing in the financial sector.
Sustainability rules that apply to credit institutions, management companies, investment firms and issuers mainly derive from:
- the applicable provisions of MiFID II (and its transposing regulations)
- Regulation (EU) 2020/852
- Regulation (EU) 2019/2088
- Commission Delegated Directive (EU) 2021/1270 (and its transposing regulations - Decision amending the Decision on business operations of management companies and Decision amending the Decision on the risk management of investment funds)
- Commission Delegated Regulation (EU) 2021/1255
- Commission Delegated Regulation (EU) 2021/2139
- directives 2014/95/EU and 2013/34/EU (and their transposing legislation: the Companies Act).
In this regard, please also note that Directive (EU) 2022/2464 is not transposed yet.
In addition, provisions of the Consumer Protection Act that prohibit misleading advertisements and misleading commercial practices toward consumers may also apply in cases of greenwashing.
The relevant legal framework is based either directly on EU legislation or on national legislation that transposes the relevant provisions of EU legislation.
Yes. Greenwashing, which may occur in the financial sector, is addressed specifically, namely most of the sustainability-related requirements (e.g. regarding fair, clear and non-misleading information, and disclosures of non-financial information) apply only in the financial sector.
No.
There is a lack of a clear definition of “greenwashing”, which can result in various ambiguities with the application of general rules and concepts when addressing cases that might represent greenwashing. Further, there is also a lack of guidance on how to apply the general legal framework in order to address the specifics pertaining to the financial/banking sector.
An additional issue is the factual background (including scientific and technical criteria that such requirements contain) and the pertaining lack of (reliable) data. The question is, how many obligations and also responsibilities to impose on the addressees of respective obligations since they are often organically dependent on data that they cannot obtain themselves or are unable to interpret and apply such requirements due to their technical and evolving nature.
The specifics that apply in the financial sector cannot be addressed due to the lack of guidance. Adoption of appropriate guidelines would thus facilitate fulfillment of regulatory requirements for the respective addressees, as well as ensure a common approach by the various supervisory authorities that are engaged in cases of greenwashing.
Market in Financial Instruments Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO7888
Companies Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO4291
Decision Amending the Decision on Business Operations of Management Companies: http://www.pisrs.si/Pis.web/pregledPredpisa?id=SKLE12855
Decision Amending the Decision on the Risk Management of Investment Funds: http://www.pisrs.si/Pis.web/pregledPredpisa?id=SKLE12856
Consumer Protection Act: http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO7054