Amendment: Sustainability factors in product governance (Directive 2017/593)

This procedure updates the rules for how financial firms design and manage investment products. It requires firms to integrate sustainability factors—such as environmental and social goals—into their product governance processes to ensure that financial products align with the interests of their target clients.

This affects financial institutions and investment firms. They must now consider sustainability risks and preferences when creating and selling investment products to prevent 'greenwashing' and protect investors.