How Asset Managers Can Navigate Greenwashing Risks: Insights from EY Switzerland

Sustainability shapes finance. Asset managers now face greenwashing. Some label funds green even when they do not meet strict criteria. EY Switzerland’s experts, Heidi Gysi and Kelly Ching, share clear tips. They help asset managers spot and handle greenwashing risks.

Understanding Regulatory Context and Market Standards

EU’s Sustainable Finance Disclosure Regulation (SFDR)

The EU’s SFDR uses a tier system. This system marks levels of sustainability. The aim is to boost transparency and help compare products.

Swiss AMAS Self-Regulation

In Switzerland, AMAS sets the rules. They offer a principle-based guide that defines what is sustainable. The guide changes over time. This change keeps asset managers on alert.

Challenges in Greenwashing Risk Management

• Asset managers face a lack of clear data. They risk marketing funds as greener than they are.
• Different rules and words across regions create confusion.
• New laws and rules need quick changes by asset managers.

Key Strategies for Asset Managers

1. Build Strong Due Diligence

   • Collect ESG data in a clear way.
   • Check data with trusted third-party sources.

2. Keep Communication Clear

   • Do not use vague words in ads.
   • Share goals, methods, and limits with full honesty.

3. Improve Internal Controls

   • Set clear roles for checking sustainability claims.
   • Train teams on new rules and greenwashing risks.

4. Work with Regulators and Peers

   • Join discussions and rule-set teams.
   • Watch for changes in SFDR, AMAS, and other rules.

Build Long-Term Trust Through Real Action

EY shows that real commitment builds trust. Honest actions attract investors and protect a firm’s name. Asset managers who stay clear and true earn long-term value.

For asset managers who want clear advice and help with green finance rules, EY offers strong support with deep law expertise and smart advice.

Source: EY Switzerland, “How can asset managers navigate greenwashing risks?” (October 2025)

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