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Regulatory Briefing: ESMA outlines guidance to combat investment fund greenwashing

The European Securities and Markets Authority has issued a supervisory briefing outlining the approach it expects national financial regulators in the EU to take on supervising “investment funds with sustainability features”.

Combating greenwashing is highlighted as an overarching aim of the paper published on 31 May. It includes guidance on issues such as ensuring investment funds are complying with requirements under the EU’s Sustainable Finance Disclosures Regulation, and when it is appropriate for a fund to use labels such as ‘green’, ‘impact’ or ‘social’.

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