The impact of ESMA's proposals on the nomenclature of ESG and sustainable funds

ESMA ( The European Securities and Markets Authority) recently proposed new guidelines on fund nomenclature conventions. In order to reduce the risk of greenwashing, the new guidelines state that funds intending to use ESG and sustainability-related terms in their name must ensure that at least 80 % investments show environmental or social characteristics. Funds that use sustainability-related terms should also "significantly" invest in sustainable investments. (Christopher Cembran, Fund Research MainStreet Partners, more at esgnews.it)