The European Union proposed new rules for sustainable finance on Wednesday that would for the first time require publicly-listed and large private companies to report standardized information on their environmental and social impacts.
The proposal is ultimately meant to "improve the flow of money" towards real sustainable finance, known as ESG investing for its basis in environmental, social and governance factors, according to the European Commission. It also would make it harder for companies to "greenwash" themselves by exaggerating their benefits to a new and greener economy.
