The European Securities and Markets Authority (ESMA) has published two information briefings for market participants on ways to combat greenwashing and improve the transparency of sustainability claims made by investment funds. The briefings do not introduce new regulatory requirements. They are intended for educational purposes and are based on established market practices.
The first briefing examines impact claims relating to investment funds and bonds. Market participants interpret the concept of positive environmental or social impact differently and vary in the level of ambition reflected in their claims. ESMA therefore recommends clearly explaining what changes they aim to achieve, how they intend to deliver a positive impact, and how they will measure the results, so that investors receive clear and balanced information.
The second briefing focuses on climate transition claims and draws on established practices relating to funds, bonds, and benchmarks. Such claims are often forward-looking and involve uncertainty, as their achievement may depend on future actions, assumptions, and external factors. The briefing highlights the importance of clearly communicating transition objectives, the means of achieving them, and the methods used to assess and report progress, including relevant assumptions, data limitations, and dependencies on external factors.
These publications form part of ESMA’s broader series of documents aimed at improving the transparency and consistency of sustainability-related disclosures.
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