This e-learning module equips financial professionals with a practical understanding of Greenwashing. Why it matters, how it shows up in sustainability claims, and the risks it creates. Learners will explore common greenwashing patterns, key consequences, and Singapore’s legal and regulatory landscape (including civil liability and financial sector rules), alongside relevant industry/MAS guidance and good practices that help strengthen disclosure integrity and guard against misleading ESG communications.
Target Audience
Asset Managers, Financial Planners/Advisors, Private Banking Wealth Management Professionals to fulfill SFA/FAA Core (RRCE) requirements.
Course Objectives
Upon completion of this course, participants will be able to:
- Define greenwashing and explain why sustainability-related claims must be accurate, evidence-based, and not misleading.
- Identify common types of greenwashing (e.g., omission, unsubstantiated claims, inconsistency, exaggeration) in product disclosures and client communications.
- Describe the consequences of greenwashing, including reputational damage, regulatory action, and civil liability exposure.
- Summarise the key Singapore legal/regulatory mechanisms that can apply to misleading sustainability claims (CPFTA, misrepresentation frameworks, and SFA Section 199 including penalties).
- Apply MAS good disclosure practices for retail ESG funds, including defining ESG terms and explaining how ESG criteria/metrics and data are used.
- Adopt stronger controls for ESG-related advertising and digital communications, aligned to SCAP principles and MAS expectations for digital advertising activities.
Course Outline
Chapter 1: Introduction
- Why sustainability claims matter
- Definition of Greenwashing
- Types of Greenwashing
- Consequences and Risks of Greenwashing
Chapter 2: Regulatory frameworks that cover Greenwashing in Singapore
- Civil Liability mechanisms
- Consumer Protection (Fair Trading) Act (2003) or “CPFTA”
- Common Law Doctrine of Misrepresentation
- Misrepresentation Act 1967
- Financial Sector Regulations
Chapter 3: Other Anti-Greenwashing Guidelines
- Singapore Code of Advertising Practice
- Competition and Consumer Commission of Singapore (CCS) Guide on Quality-Related Claims
- MAS Information Paper on Good Disclosure Practices for Retail ESG Funds
- MAS Guide on Responsible Financial Content Creation
Chapter 4: Strengthening the Financial Ecosystem against Greenwashing
- Finance for net Zero (FiNZ) Action Plan
- Singapore-Asia Taxonomy for Sustainable Finance