CFTC’s Behnam: regulators must be alert to ‘greenwashing’

Risk USA: ESG products that miss sustainability goals may fall foul of customer protection rules

Rostin Behnam_CFTC
Photo: John Harrington

Regulators must ensure that financial products that tout their ESG and sustainability credentials do not mislead investors, a member of the US Commodity Futures Trading Commission has said.

With financial firms “slapping the ESG tag” on all types of products, CFTC commissioner Rostin Behnam said regulators had to watch out for ‘greenwashing’.

“We have to be careful. This goes to the heart of what we do from a customer protection standpoint, from a disclosure standpoint, from a transparency

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