CAPITAL MARKETS | ESMA Guidelines on harmonised criteria for use of ESG and sustainability terms in fund names 

On 14 May 2024, the European Securities and Markets Authority (ESMA) issued its Guidelines on fund names using ESG or sustainability-related terms. The objective of the Guidelines is (a) to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims implied in investment fund names, and (b) to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in any investment fund name. According to the Guidelines, in order to use ESG or sustainability-related terms, a minimum proportion of at least 80% of the investments from the relevant investment fund should be used to meet environmental, social or sustainable investment objectives.

Newsletter n. 97 – June 2024