ESMA Update: ESG Terms in Fund Names

The European Securities and Markets Authority (ESMA) has published its final guidelines on the use of ESG terms in fund names, following a lengthy consultation and concerns over greenwashing.

The final report contains a number of changes relating to the scope of the rules, threshold for sustainable investments, minimum safeguards, measurability of impact and transition-related terms, and final transitional period.

Read our summary here: ESMA update: ESG terms in fund names – Global Relay Intelligence & Practice

Firms using sustainability related terms in their fund names are advised to check whether they are in scope for the final rules and assess their funds against the ESMA thresholds and requirements.

If you would like more information on how you might be affected by the ESMA updates, please get in touch.