Guidelines on Funds’ Names Using ESG or Sustainability-Related Terms
Guidelines on Funds’ Names Using ESG or Sustainability-Related Terms
ESMA’s new guidelines mandate that funds using ESG names allocate at least eighty percent of assets to genuine sustainability goals, preventing misleading marketing. This strict alignment ensures fund labels accurately reflect investment strategies, reducing confusion for investors regarding actual environmental impact. These measures are vital for combating greenwashing by enforcing transparency and proof of sustainability claims, thereby protecting market integrity and fostering trust in financial products.
Source: natlawreview.comPublished on 2024-11-07
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