Global watchdog proposes new ethics code to combat greenwashing

Firms that check environmental, social and governance claims made by companies will be asked to follow a proposed new ethics code to help combat greenwashing, the chief of a global standards body told Reuters. Trillions of dollars have flowed into investment funds touting green credentials, but these can be misleading, a practice known as greenwashing. Gabriela Figueiredo Dias, chair of the International Ethics Standards Board for Accountants (IESBA), said it was proposing revisions and additions to its ethics standards for auditing sustainability information from companies. The IESBA is an independent global body that sets ethics standards for business and other organisations. Dias said the proposed standards, which will be open for public consultation until May, would complement the development of new technical assurance standards from the International Auditing and Assurance Standards Board.