ESMA has translated their Guidelines on ESG-related fund names, which has started the clock for applicability. For information on the asset allocation thresholds and the exclusionary criteria, alongside the funds in scope and supervisory expectations, please see our Q&A here.

For new funds, the Guidelines will apply from 21 November 2024.
For existing funds, the Guidelines will apply from 21 May 2025.

In the announcement that the clock has started, ESMA sets out that the “Guidelines aim to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund names, and to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in fund names”.

For further information, please reach out to the Proskauer UK Regulatory team.