CBB Launches TechSprint to Combat Greenwashing
The Global Financial Innovation Network (GFIN) and Central Bank of Bahrain (CBB) have jointly launched the Greenwashing TechSprint.
The Financial Conduct Authority (FCA)-led GFIN, consisting of over 80 international organisations that support financial innovation for consumers, has invited global firms to join the Greenwashing TechSprint organised by the participating member, CBB.
The CBB is aiming to establish trust among consumers and firms in the authenticity of investment products with sustainability characteristics. The bank wants to curb exaggerated, unsubstantiated, or misleading claims about the Environmental, Social, and Governance (ESG) credentials of products as the number of 'green' products and sustainability claims rises.
To tackle the risks of greenwashing in financial services, the CBB will participate in a virtual TechSprint hosted on the FCA's Digital Sandbox. The initiative will bring together international regulators, firms, and innovators to collectively address sustainable finance as a priority. The goal of TechSprint is to develop a tool or solution that can help the market and regulators address the risks of greenwashing effectively.
Ms. Yasmeen Al Sharaf, Director of Fintech and Innovation Unit at CBB, stated that the financial services sector has a unique responsibility to drive positive change and combat the risk of greenwashing. She expressed her pleasure in participating in the TechSprint and looks forward to finding solutions to tackle this issue. Ms. Sharaf emphasised that leveraging technology can help build a more transparent, trustworthy, and sustainable financial ecosystem.
The CBB invites firms to join the TechSprint to combat greenwashing. Applications open on April 17 and will last for 4 weeks. Participants can work with experts, stakeholders, and professionals globally. An onboarding session will take place on June 1 and 2. The TechSprint starts on June 5 and ends in September with a showcase day. Interested firms can visit the GFIN website to check the list of participating regulators or contact the CBB at fintech@cbb.gov.bh for more information.
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Source: CBB
