ESMA Publishes Its Final Report On Guidelines On Funds' Names Using ESG Or Sustainability-Related Terms

On 14 May 2024, the European Securities and Markets Authority (ESMA) released its final report on the guidelines on funds' names using ESG or sustainability-related terms (the "Guidelines"), which also include a minimum investment threshold and qualifying criteria for different categories of ESG- and sustainability-related terms. The purpose of these Guidelines is to ensure that fund names using ESG- or sustainability-related terms are fair, clear and straightforward.

Background

As part of its efforts to combat greenwashing, in November 2022, the ESMA launched a public consultation on guidelines on funds' names using ESG or sustainability-related terms. The feedback received was used to create the final provisions in the Guidelines, as described below.