Under the European government, European Securities and Markets Authority (ESMA) released guidelines to regulate fund names using ESG or sustainability-related terms, aiming to curb greenwashing and enhance investor protection in the digital financial landscape. These guidelines set thresholds for fund investment strategies, ensuring alignment with sustainability standards to prevent misleading practices.
Effective immediately for new funds and within six months for existing ones, fund managers must comply, promoting transparency and integrity in ESG investments. Competent authorities oversee compliance, reflecting the government’s commitment to digital transparency and sustainable finance in the EU.
