Valdis Dombrovskis, the European Commission's vice president on euro and social dialogue, called for the formation of an agreement to combat so-called "greenwashing," or the use of misleading claims about the environmental benefits of a service, the Financial Times reported.

The Latvian politician, who is also in charge of financial stability at the commission, hoped that member states would reach a deal by September and forward it to the European Parliament to reach an overall deal by 2019-end. Such an agreement would support future environment-oriented efforts and force fund managers to justify green claims they made on their investments, Dombrovskis said.

In 2018, the commission proposed a draft legislation outlining the core criteria that products or services would have to satisfy to be considered "green." The draft law revealed how companies and fund managers use invalid claims to lure environmentally conscious investors, the FT said, noting, however, that governments criticized the draft since it would give the commission too much control.

Dombrovskis said the "legislation has to be adaptable" and that it is going to be "a work in progress," according to the Aug. 11 report.

Finland, which holds the commission's presidency, has reportedly made the envisaged deal a priority, with incoming President Ursula von der Leyen promising a European climate law to make the continent carbon-neutral by 2050, the FT added.