On May 14, 2024, the European Securities and Markets Authority (ESMA) released its final guidelines on the naming of funds that use ESG or sustainability-related terms. These guidelines aim to protect investors from the risks of greenwashing and establish minimum standards for funds marketed in the EU that include specific ESG terms in their names.

ESMA's new guidelines on fund names using ESG and sustainability-related terms present new challenges and opportunities for financial advisors and investment managers. Understand the implications and adapt your investment strategy.