Dutch Markets Regulator Tells Banks and Investors to Improve Sustainability Claims

Netherlands-based markets regulator the Dutch Authority for the Financial Markets (AFM) warned financial firms that it plans to pay extra attention on sustainability claims in its supervision activities this year, following a study that indicated that “claims still need improvement.”

The study, conducted in 2024 and 2025, followed the release in 2023 by the AFM of its Guidelines on Sustainability Claims, outlining expectations for banks, insurers, investment firms and pension providers to make correct, clear and non-misleading sustainability claims.

According to AFM, while the study found that financial markets participants were using the guidelines, the regulator found several areas that required improvement, particularly in areas including the specificity of the claims and the ease of finding information to substantiate the claims.

The AFM highlighted 4 key areas of improvement for financial firms’ sustainability claims, including ensuring that the claims are factually accurate and representative; specifying what the claims mean for the market participant or the product; ensuring that substantiation is easy to find, and providing necessary explanations for claims on climate neutrality, ESG ratings and impact.

Specific recommendations included making sure that claims are factually correct and describe both the positive and negative aspects of the sustainability impact, not emphasizing small benefits, avoiding vague language and relevant context, avoiding claims that can’t be substantiated, explaining how long-term claims such as “climate neutrality” will be achieved, explaining what ESG labels and scores mean, and only making impact claims if there is actually additional, intentional and measurable impact.

The regulator added that it will focus extra attention on sustainability claims in supervision in 2026, including conducting another study this year.

The AFM said:

“We expect market participants to further improve their claims where necessary. Sustainability in the financial sector is a strategic priority of the AFM.”