Guidelines on the names of funds that use the term ESG or sustainability-related terms Guidelines on the names of funds that use the term ESG or sustainability-related terms

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Guidelines on the names of funds that use the term ESG or sustainability-related terms Guidelines on the names of funds that use the term ESG or sustainability-related terms

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Business and biodiversity basics Sustainable investment

ESMA has published the translation of its Guidelines on the use of ESG and sustainability-related terms in fund names. The purpose of these guidelines is to specify the circumstances in which fund names that use ESG or sustainability-related terms are unfair, unclear or misleading.

A fund's name is a means of communicating information about the fund to investors and is also an important marketing instrument for the fund. A fund's name is often the first piece of fund information that investors see, and while investors should go beyond the name itself and carefully examine the information underlying a fund, a fund's name can have a significant impact on their investment decisions.

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