EBA updates its Product Oversight and Governance Guidelines, requiring banks to strengthen ESG governance and controls to reduce greenwashing risks across the product lifecycle from Jan 2027

The final amending guidelines update the EBA’s product oversight and governance framework for retail banking products with ESG features, following a 2025 consultation on greenwashing risks. They require manufacturers and distributors to ensure ESG-related features are properly reflected in product design, target market assessment, testing, distribution and monitoring, while avoiding…