🌱 New ESMA Guidelines on ESG Terminology in Fund Names 🌍

As of May 14, 2024, the European Securities and Markets Authority (#ESMA) has enacted definitive guidelines to enhance transparency and prevent greenwashing in fund names. These guidelines are pivotal for fund managers and investors alike, establishing rigorous criteria for incorporating ESG and sustainability terms.

Key Points:

- Threshold for Usage: Funds must allocate at least 80% of their investments towards environmental, social characteristics, or sustainable objectives to use ESG-related terms.

- Exclusion Criteria Defined: Specific exclusions are in place for terms like "Environmental", "Impact", "Transition", "Social", and "Governance", aligning with Paris-aligned and Climate Transition Benchmarks.

- Immediate Application: Newly established funds from the guideline's application date must adhere immediately, while existing funds have a six-month transitional period.

The ESMA aims to protect investors and empower asset managers with clear standards, ensuring that sustainability claims are both credible and substantiated.

For a deeper dive into how these guidelines might impact your strategy and operations, visit ESMA’s official site: https://www.esma.europa.eu/press-news/esma-news/esma-guidelines-establish-harmonised-criteria-use-esg-and-sustainability-terms

👉 Stay Ahead: Ensure your fund strategies are compliant and leverage these guidelines to enhance your fund’s integrity and appeal.

🔗 Engage with us to navigate these changes effectively. At Peak Suisse, we are dedicated to elevating excellence in financial services through strategic compliance and innovation.

#ESMA #SustainableFinance #FundManagement #ESG #PeakSuisse