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ARTICLE · 20 MAY 2024

ESMA Publishes Finalised Guidelines On Fund Names' Using ESG Or Sustainability-Related Terms

Dillon Eustace
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ESMA has voiced ongoing concerns around the risk of greenwashing arising from the use of ESG or sustainability-related terms in the names of funds which fail to meet sustainability...

IrelandEnvironment
Cillian Bredin
Cillian Bredin
Aisling O'Malley
Aisling O'Malley
Alanna Hannon
Alanna Hannon
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Background

ESMA has voiced ongoing concerns around the risk of greenwashing arising from the use of ESG or sustainability-related terms in the names of funds which fail to meet sustainability standards commensurate with the use of such names.

In November 2022, it published a consultation on its proposed guidelines on funds names using ESG or sustainability-related terms in which it outlined specific criteria which it proposed must be satisfied by such funds. In a statement published in December 2023, ESMA confirmed that it proposed to make a number of amendments to the draft guidelines originally consulted on in light of responses received to the consultation.

On 14 May 2024, it published its finalised guidelines on this matter (Guidelines).

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