The European Securities and Markets Authority has launched a consultation on the use of ESG and sustainability-related terms in fund names, in a bid to tackle greenwashing and protect investors.
The EU's financial markets regulator is seeking stakeholder feedback by February next year on the introduction of quantitative thresholds for the minimum proportion of investments needed to support the ESG or sustainability credentials in funds' names. The proposals include a quantitative threshold (80%) for the use of ESG related words and an additional threshold (50%) for the use of "sustainable" or any sustainability-related term only, as part of the 80% threshold. It also includes the application of minimum safeguards to all investments for funds using such terms and additional co...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
