ESMA has expressed ongoing concerns about the risk of greenwashing arising from the use of ESG or sustainability-related terms in fund names that do not meet the sustainability standards appropriate to the use of such names.

In November 2022, it published a consultation on its proposed guidelines on fund names using ESG or sustainability-related terms, outlining specific criteria that these funds must meet. In a statement published in December 2023, ESMA confirmed that it proposes to make several amendments to the draft guidelines that were initially consulted on, based on the responses received in the consultation. (Cillian Bredin, Aisling O'Malley, Alanna Hannon, more at lexology.com)