As the regulatory body responsible for overseeing the financial services industry in Malta, we must protect consumers and ensure fair and transparent practices. With the increasing demand for sustainable and ethical investments, we needed to address the issue of greenwashing.

Greenwashing involves misleading claims about the environmental, social, or governance (ESG) benefits of certain investments, creating a false impression of their sustainability. In the investment world, this can mislead consumers into thinking that their money is being invested in environmentally friendly or socially responsible companies, when in reality, it may not be the case. Such practices not only undermine the credibility of the financial industry but also pose risks to investors who seek to align their portfolios with genuine ESG principles.

As a result, the Authority has launched a new campaign focused on tackling this topic. This includes the release of informative videos on social media, a dedicated page on our website, and appearances by our employees on local television programs to discuss the importance of responsible investing and how to identify and avoid greenwashing.

The campaign seeks to empower investors and consumers of financial services with the knowledge necessary to distinguish genuine ESG investments from misleading ones.

We continue educating and supervising our licence holders to ensure transparent and accurate reporting when offering or marketing products or services with ESG credentials.

For further details and resources related to the campaign, please visit the MFSA website and read the following factsheet issued by the European Supervisory Authorities.