- 9 in 10 (92%) compliance professionals say Irish financial services firms are downplaying their green efforts
- Financial services firms now banned from misleading consumers about their “green” credentials in adverts
A significant number of firms in the Irish financial services sector are not adequately prepared for a new anti-greenwashing advertising rule which came into force on the 24th March 2026 with one-third (33%) of compliance experts reporting that financial services firms here are either poorly prepared or unprepared for the new requirement.
This is according to a new survey by Ireland's professional body for compliance professionals, the Compliance Institute.
The survey, which polled approximately 150 compliance experts working primarily in Irish financial services organisations nationwide, asked the professionals how prepared they believe financial services firms in Ireland are for the new rule.
Under the rule, as part of the Central Bank’s revised Consumer Protection Code, regulated Irish financial services firms must ensure their advertising does not mislead customers about a product or service’s sustainability, the firm’s “green credentials,” or its business model[1].
Headline findings from the survey reveal that:
- One in four (25%) compliance professionals believe that most firms are “poorly prepared” for the new anti-greenwashing advertising rule as the firms have limited ability to provide reliable evidence to back up sustainability or “green” claims in adverts
- Almost one in ten (8%) compliance experts believe that Irish financial services firms are “unprepared” for the new rule, stating that “very few firms have meaningful processes or controls in place” to comply with the requirement.
- About two thirds (67%) of compliance professionals feel that firms in the Irish financial services sector are either “mostly” or “moderately” prepared for the new rule. More than half (53%) believe that firms are moderately prepared, with “gaps evident across the sector”. One in seven (14%) state that the majority of firms have robust processes and evidence, though “a few may lag”.
Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:
“Greenwashing is an attempt by companies to present their products and activities as environmentally friendly when in fact there is no real quantifiable basis for this claim. Unfortunately, we are seeing ‘greenwashing’ in companies of all sizes today, with many ‘green’ references being simply marketing aids rather than measurable environmental initiatives. So, the new anti-greenwashing advertising rule is certainly welcome as it should help ensure that sustainable products are accurately and fairly represented to customers and thereby, avoid or reduce the risk of a firm, product or service looking more sustainable than it actually is.
While it’s encouraging that our survey has found that around two-thirds of compliance professionals believe that the Irish financial services sector is either mostly or moderately prepared for the new rule, it’s worrying that about a third of these experts feel that firms are not ready.
It’s important that genuine efforts made by companies to tackle and reduce any possible negative impacts that their investments or products may have on the environment and society are rightly recognised and appreciated, while any companies acting deceptively or unethically in this regard can be held to account. The new anti-greenwashing rule should help Ireland move closer to that goal – but only if everyone is playing their part.”
‘Greenhushing’
The survey also examined the prevalence of another new trend, known as ‘greenhushing’, when companies choose to under-communicate their sustainability efforts.
An overwhelming majority (92%) of compliance experts believe that, to varying extents, greenhushing is emerging as an issue within Irish financial services, according to the survey (see Table 2 in Appendix). Around half (51%) of compliance professionals believe that while currently limited, greenhushing is a growing issue within the Irish financial services sector, while one in ten (10%) state that it’s already a significant issue “that is likely to increase”. Less than one in ten (8%) believe greenhushing is not an issue within the sector while almost one in three (31%) feel it’s currently a minor issue.
Commenting on this aspect of the research, Mr Kavanagh said:
“There are many reasons firms may be tempted to engage in greenhushing. For example, there may be a concern about the repercussions which more sustainable goals or actions might have on their overall business, particularly in areas of the world where there’s an ‘anti-green agenda’. Firms may also be concerned that that they may be called out if they don’t live up to their sustainable goals or claims. While these concerns may be understandable, greenhushing can lead to lack of transparency for consumers and investors, making it difficult for them to make informed decisions and to accurately assess a company’s true impact on the environment. So, while it’s important that financial services firms don’t overplay their sustainability efforts, it’s equally important that they don’t downplay their efforts here either.”
