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ESMA’s guidelines on funds’ names will apply from November 21, 2024

Wind turbines generate power and pylons carry electricity near the Keadby Power Station.
Photo: Christopher Furlong/Getty Images

The ESMA guidelines aim to enhance transparency and investor protection by regulating the use of ESG and sustainability-related terms in fund names.

The European Securities and Markets Authority (ESMA) has published the translations in all official EU languages of its guidelines on funds’ names using ESG or sustainability-related terms.

The objective of the guidelines is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund