The European Securities and Markets Authority (“ESMA”) has published its Final Report on the Guidelines on funds’ names using ESG or sustainability-related terms (the “Guidelines”).  ESMA was provided with the mandates to develop guidelines on unclear, unfair or misleading fund names in the updated Alternative Investment Managers Directive[1] (“AIFMD”) and UCITS Directive, which are now in force.

On 3 May 2024, the European Commission published a summary of the 2023 consultation on the EU Sustainable Finance Disclosure Regulation (“SFDR”) (the “Summary”).  For more information on the consultation, please see our alert here.

Whilst the Summary does not hold substantive policy views of the European Commission, the feedback

After political to-and-fro for over two years, the EU Corporate Sustainability Due Diligence (“CS3D”) made it over the line on 24 April 2024 with the European Parliament formally approving it.

We set out the headline requirements and timing of CS3D below.

What is the CS3D?

This legislation is far-reaching with mandatory human rights

On 31 May, 2024, a new anti‑greenwashing rule is being introduced by the Financial Conduct Authority (the “FCA”) as part of its Sustainability Disclosure Requirements (“SDR”). However, the FCA has only recently published their finalised anti‑greenwashing guidance, leaving firms with around a month’s time to review and implement the final guidance to ensure compliance.