Facts for Prelims (FFP)
Context: The Reserve Bank of India (RBI) has opened the application window for firms and innovators to participate in the Global Financial Innovation Network’s (GFIN) Greenwashing TechSprint.
About the Initiative:
GFIN’s 1st ever Greenwashing TechSprint brings together 13 international regulators, (including RBI), along with firms and innovators to address the priority of Environmental, Social, and Governance (ESG) issues and mitigate the risks of greenwashing in financial services.
|Objectives||The objective of TechSprint is to develop a tool that can help regulators and the market effectively tackle the deceptive practice of greenwashing.|
|About Greenwashing||Misleading marketing that falsely portrays positive environmental or social outcomes|
|About ESG Framework||It helps stakeholders, such as investors and customers, understand how an organization manages its environmental responsibilities, social impact, and corporate governance practices.|
|Status of India on ESG||India is making progress in implementing ESG regulations through the introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework by the Securities and Exchange Board of India (SEBI).|
|About BRSR framework||The BRSR framework aims to connect a company’s financial performance with its ESG practices. It has been mandated for the top 1,000 listed entities in terms of market capitalization starting from the financial year 2022-23.|
|About GFIN (Global Financial
|GFIN was launched in 2019 by international financial regulators and organizations with the aim of supporting financial innovation and identifying regulatory gaps in emerging technologies across different sectors. It acts as a surveillance tool to detect issues before they become problematic.|