Funds Calling Themselves ‘ESG’ Face New Restrictions in Europe
- New requirements follow concerns of misleading ESG claims
- ESMA standard comes as SFDR remains under fundamental review
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Asset managers in Europe face new restrictions on what they can call an ESG fund.
An investment product with ESG — or equivalent terms — in its name will need to place at least 80% of its assets under management in something that’s related to environmental, social or governance objectives, according to long-awaited guidelines by the European Securities and Markets Authority.