By Huw Jones LONDON (Reuters) – The European Union’s markets watchdog said on Friday it will start working on a legal definition of “greenwashing” to underpin enforcement action as trillions of euros flow into funds that are advertised as climate-friendly. Regulators are playing catch-up with the deluge of money going into investments that tout their environment, social and governance (ESG) attractions. Few if any investment firms have been punished for “greenwashing”, or over-inflating their ESG credentials, as there are no hard rules on what it means. The European Securities and Markets Auth…