On 30 June 2026, the European Banking Authority (“EBA“) published revised Product Oversight and Governance Guidelines for retail banking products (“POG“). The updated POG clarify the requirements applicable to products with environmental, social and governance (“ESG“) features and strengthen measures aimed at addressing greenwashing risks, where ESG-related claims may be misleading or not sufficiently substantiated. The final report on the amended POG can be found here.

The revised POG seek to ensure that financial institutions apply robust consumer protection standards when designing, marketing and distributing ESG-related products. According to the EBA, the growing prominence of ESG products increases the risk that consumers could be misled or sold products that do not adequately meet their expectations and needs.

To address these concerns, the EBA has embedded ESG and greenwashing considerations throughout the entire product lifecycle. The amendments cover key areas such as manufacturers’ internal control functions, target market identification, distribution channels, and information provided to distributors. As a result, ESG-related considerations are expected to be assessed and communicated more consistently and transparently. The POG’s revision also includes technical updates reflecting broader developments in the EU regulatory framework, including changes related to internal governance and third-party risk management.

The new POG will apply from 11 January 2027 and will be published in all 24 official EU languages. Through these revisions, the EBA aims to strengthen the credibility of ESG products and reduce greenwashing risks across the European financial sector.