Guidance Note on Greenwashing and Consumer Protection

The Isle of Man Financial Services Authority has published guidance to raise awareness within the regulated sector of consumer protection risks related to greenwashing and to provide further clarity around the expectations of the Authority in respect of these risks.

This represents the second deliverable against the Authority’s contribution to Pillar 1 (Enabling Environment) of the Isle of Man Sustainable Finance Roadmap. The Authority’s workstreams are focused on creating a platform that enables firms to develop products and services, with a view to fostering the growth of sustainable finance as part of a well-regulated international business centre. The other pillars are focusing on developing capacity, promotion and communication, and mobilising capital.

This guidance note is applicable to entities regulated under the Financial Services Act 2008, the Insurance Act 2008, the Collective Investment Scheme Act 2008 and the Retirement Benefits Scheme Act 2000.

The aim is to provide information on what greenwashing is, how it can manifest and the impact it can have on consumers, along with how firms can ensure they protect both their reputation and their customers.

The document focuses on how these risk management expectations sit within the existing regulatory frameworks, with no new requirements for firms. The majority of the guidance is applicable only for business that are actively making green or sustainability based claims, or those that have identified a material risk of greenwashing as part of their risk assessment processes.

The Isle of Man Sustainable Finance Symposium, the flagship annual event for the Isle of Man Sustainable Finance Initiative, takes place on 5 November 2025, where more detail will be shared on the progress of this cross-government project to enable growth for businesses and help the Isle of Man achieve its wider goals for growth and sustainability. The Authority remains committed to playing its part in driving forward this important project for the Island’s future.