Harry Usuwiel’s Post

📢Newsflash: ESMA Issues New ESG Fund Naming Guidelines! 🌍 The European Securities and Markets Authority (ESMA) has introduced new guidelines to ensure transparency, reduce the risk of greenwashing, and protect investors from misleading sustainability claims in ESG funds. Effective from November 21, 2024, these guidelines require that at least 80% of a fund's investments align with its stated environmental or social objectives. Key Points: - Clear criteria for ESG fund naming - Specific exclusions based on Paris-aligned and Climate Transition Benchmarks - Implications on product governance, client reporting and disclosures, tooling, and marketing information to avoid greenwashing - Fund managers and distributors, prepare to align with these new standards! 📅 Important Dates: - Compliance status notification by NCAs: October 21, 2024 - Guidelines apply to new funds: November 21, 2024 - Guidelines apply to existing funds: May 21, 2025 Stay informed and contact us for any questions and/or support needs! Download the full document for detailed insights:📄🔗https://lnkd.in/eTeWMbys #ESG #SustainableFinance #ESMA #PwCBelgium

📢Newsflash: ESMA Issues New ESG Fund Naming Guidelines! 🌍 The European Securities and Markets Authority (ESMA) has introduced new guidelines to ensure transparency, reduce the risk of greenwashing, and protect investors from misleading sustainability claims in ESG funds. Effective from November 21, 2024, these guidelines require that at least 80% of a fund's investments align with its stated environmental or social objectives. Key Points: - Clear criteria for ESG fund naming - Specific exclusions based on Paris-aligned and Climate Transition Benchmarks - Implications on product governance, client reporting and disclosures, tooling, and marketing information to avoid greenwashing - Fund managers and distributors, prepare to align with these new standards! 📅 Important Dates: - Compliance status notification by NCAs: October 21, 2024 - Guidelines apply to new funds: November 21, 2024 - Guidelines apply to existing funds: May 21, 2025 Stay informed and contact us for any questions and/or support needs! Download the full document for detailed insights:📄🔗https://lnkd.in/eKFThgHY #ESG #SustainableFinance #ESMA #PwCBelgium

Dear network, 📢Newsflash: ESMA Issues New ESG Fund Naming Guidelines! 🌍 The European Securities and Markets Authority (ESMA) has introduced new guidelines to ensure transparency, reduce the risk of greenwashing, and protect investors from misleading sustainability claims in ESG funds. Effective from November 21, 2024, these guidelines require that at least 80% of a fund's investments align with its stated environmental or social objectives. Key Points: - Clear criteria for ESG fund naming - Specific exclusions based on Paris-aligned and Climate Transition Benchmarks - Implications on product governance, client reporting and disclosures, tooling, and marketing information to avoid greenwashing - Fund managers and distributors, prepare to align with these new standards! 📅 Important Dates: - Compliance status notification by NCAs: October 21, 2024 - Guidelines apply to new funds: November 21, 2024 - Guidelines apply to existing funds: May 21, 2025 Stay informed and contact us for any questions and/or support needs! Download the full document for detailed insights:📄🔗https://lnkd.in/eFzvPiZx #ESG #SustainableFinance #ESMA #PwCBelgium

🍃 EU against greenwashing in funds using #ESG or #Sustainability names ESMA has released finalized guidelines for using ESG and sustainability-related fund names. The goal is to protect investors from false or exaggerated sustainability claims in fund names and to give asset managers clear rules for using ESG or sustainability-related terms in their fund names. Key points: ➡️ Investment thresholds Funds must have at least 80% of investments supporting ESG or sustainability characteristics. ➡️ Transition category A new category for funds aiming to improve their environmental impact, with terms like “improving” and “progress.” ➡️ Exclusions Criteria based on EU rules, ensuring funds avoid misleading claims. Background: ➡️ Investor demand Rising interest in ESG funds has increased the risk of greenwashing. ➡️ Consultation feedback Investors called for clear, consistent rules and recognition of transition efforts. Implementation: ➡️ Guidelines take effect three months after publication on the ESMA website. These guidelines will help ensure that ESG and sustainability-labeled funds genuinely reflect their investment strategies, promoting trust and transparency in the market. #Finance #Investment #GreenFinance #SustainableInvesting #ESG

implementation of new esma guidelines on esg naming convention is quite interesting. https://lnkd.in/gs-PyJKa

EU fund naming guidelines may harm the risk and return profile of some ESG products, limiting investor choices, warns Morningstar Sustainalytics in Ignites Europe: http://spr.ly/6044oTh2I Starting in November, Europe's markets watchdog will enforce rules against greenwashing by regulating the use of ESG and sustainability terms in fund names. Many asset managers are already removing these terms, which could lead to higher concentration risk and lower returns for affected funds. Hortense Bioy, CFA noted the guidelines will be "too constraining" for some ESG funds.

EU fund naming guidelines may harm the risk and return profile of some ESG products, limiting investor choices, warns Morningstar Sustainalytics in Ignites Europe: http://spr.ly/6047ooJPU Starting in November, Europe's markets watchdog will enforce rules against greenwashing by regulating the use of ESG and sustainability terms in fund names. Many asset managers are already removing these terms, which could lead to higher concentration risk and lower returns for affected funds. Hortense Bioy, CFA noted the guidelines will be "too constraining" for some ESG funds.

EU fund naming guidelines may harm the risk and return profile of some ESG products, limiting investor choices, warns Morningstar Sustainalytics in Ignites Europe: http://spr.ly/6047oRjwv Starting in November, Europe's markets watchdog will enforce rules against greenwashing by regulating the use of ESG and sustainability terms in fund names. Many asset managers are already removing these terms, which could lead to higher concentration risk and lower returns for affected funds. Hortense Bioy, CFA noted the guidelines will be "too constraining" for some ESG funds.

Only one day to go before the ESMA Guidelines on funds’ names using ESG or sustainability-related terms comes into force. The implementation of the new regulatory expectations will require thorough review of the funds' ESG strategies and is likely to lead to a number of practical questions.

New EU Guidelines to Combat Greenwashing in ESG and Sustainability Fund Names The European Securities and Markets Authority (ESMA) has introduced stringent guidelines to ensure transparency and credibility in ESG and sustainability-focused investments. With new rules requiring at least 80% of investments to meet specific environmental, social, or governance criteria, these guidelines are a significant step towards protecting investors and promoting genuine sustainability. Key Highlights: ✅ Investment thresholds and exclusion criteria for fund names ✅ Guidelines applicable three months after publication with a six-month transitional period for existing funds ✅ Enhanced transparency and accountability in the investment sector Read the full article: https://lnkd.in/e2gvsQG8 #ESG #Sustainability #Greenwashing #Investment #Transparency #ESMA #InvestorProtection #EcoActiveESG