IFSCA consultation paper on Principles to Mitigate the Risk of Greenwashing in ESG Labelled Debt Securities in the IFSC

IFSCA has issued a consultation paper on Principles to Mitigate the Risk of Greenwashing in ESG Labelled Debt Securities in the IFSC. Based on the examination of the global best practices to mitigate the risk of greenwashing, relevance of the practices to GIFT-IFSC, the assessment of IFSCA on the issue in the context of India and to instill greater confidence amongst global investors, it is proposed that issuers of ESG labelled debt securities in IFSC adhere to the following five principles:

1. Being True to Label – Avoid misleading labels and terminology
2. Screen the Green – Transparency in methodology for project selection and evaluation
3. Walk the talk – Managing and tracking use of proceeds
4. Overall Impact – Quantification of Negative Externalities
5. Be alert – Monitoring and Disclose

Comments on the draft circular may be sent by email to Mr. Abhineet Panwar, Assistant Manager, IFSCA at abhineet.panwar@ifsca.gov.in and Mr. Chintan Panchal, Manager, IFSCA at chintan.panchal@ifsca.gov.in with a copy to Mr. Pavan Kishor Shah, General Manager, IFSCA at pavan.shah@ifsca.gov.in latest by October 25, 2024.