CO2Offset on LinkedIn: ESMA34-472-440 Final Report on the Guidelines on funds names (2024)

The European Securities and Markets Authority (ESMA) updated guidelines for fund names to tackle greenwashing and safeguard investors. The focus is on making sure terms like #ESG and #sustainability truly reflect fund policies.New guidelines emphasize an 80% minimum investment for ESG-related terms, Paris-aligned benchmarks, and a "transition" category. The Guidelines are expected to be approved and published in Q2 2024. 📈🌱https://lnkd.in/d3dY5dsiNatasha Cazenave François Masquelier Christiane Hölz #esg #sustainability #financenews #investing #esma #climateaction #greeninvesting #financialmarkets #investmentguidelines #fundnames #greenwashing #transitionstrategies #investorprotection #euregulations #esgterms #sustainableinvesting #climatetransition #investorawareness #environmentalfinance #financeupdates #investmentpolicies #esginvestments #sustainablefunds #investoreducation #greeneconomy #financeinsights #esmaupdates #climatebenchmark #greenfinance #marketregulations #investorconfidence #financeguidelines #sustainablebusiness #investmentstrategies #financialtransparency

6

https://lnkd.in/gZGqFFrYIn 2021, the European Union introduced the Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR), marking a significant shift in regulatory standards. These regulations aim to combat greenwashing and promote transparency amongst investment managers by mandating disclosures related to their portfolio's alignment with the EU Taxonomy's six environmental objectives.However, recent studies reveal that many European fund managers face challenges implementing these guidelines. 1. **Complexity and Ambiguity:** 🔍 Identifying appropriate KPIs within the broad EU Taxonomy objectives is complex due to scope and ambiguous criteria.2. **Data and Disclosure Requirements:** 📊 Compliance demands substantial data, requiring robust collection systems and accurate disclosures.3. **Resource Constraints:** 💼 SFDR's demands are resource-intensive, especially for smaller fund managers.Solutions could involve clearer KPI definitions, innovative tech for data management, and support for smaller firms. Despite hurdles, the SFDR's potential to drive transparency and sustainability is vast. #SFDR #sustainability #investment 🌍💡How can investment managers overcome these challenges?

1

📢 ESMA, jointly with National Competent Authorities (NCAs), launched a Common Supervisory Action (CSA) on sustainability-related disclosures and the integration of sustainability risks👉 Using a common methodology developed by ESMA, NCAs will provide feedback on how they supervise sustainability-related disclosures to foster convergence of their practices at EU level.👉 The goal is to assess the compliance of supervised asset managers with the relevant provisions in SFDR, EU Taxonomy, UCITS and AIFMD, and more specifically to:➡ Assess whether market participants adhere to applicable rules and standards in practice.➡ Gather further information on greenwashing risks in the investment management sector.➡ Identify further relevant supervisory and regulatory intervention to address the issue.🗓 Next steps:➡ Preliminary findings of the CSA on greenwashing risks at entity and product level will provide input to ESMA's Final Report on greenwashing, expected in May 2024. ➡ NCAs will share feedback with ESMA until Q3 2024.🔗 Read more here: https://lnkd.in/enddiyqh

48

ESG: EU Regulatory Change and Its Implications: ... inconsistent data quality and differing national and regional approaches to ESG regulation, which can be problematic for global investors.

EU regs to ensure sustainable funds are fit for purpose. Bloomberg. Last December, theEuropean Securities and Markets Authority (ESMA) proposed changes and updated the timeline for its guidelines on ESG and sustainability-related terms in fund names. 🔗 Read the full article on Investment IQ:https://lnkd.in/eDq_vsPC#investing #assetmanagement #wealthmanagement #finance

EU regs to ensure sustainable funds are fit for purpose. Bloomberg. Last December, theEuropean Securities and Markets Authority (ESMA) proposed changes and updated the timeline for its guidelines on ESG and sustainability-related terms in fund names. 🔗 Read the full article on Investment IQ:https://lnkd.in/eDq_vsPC#investing #assetmanagement #wealthmanagement #finance

Earlier this week, PwC Luxembourgpublished the fourth edition of our EU ESG UCITS Poster. Despite recent geopolitical and macroeconomic shocks, the number of ESG funds in Europe is on the rise.As of end-2022, 57% of total EU-domiciled UCITS assets under management were in funds classified as Article 8 and Article 9 as per the Sustainable Finance Disclosure Regulation.👉 You can find the full poster here:https://lnkd.in/dcfJQie📰 Check out Funds Europe'scoverage:https://lnkd.in/eYi2w6yG#esg#ucits#assetmanagement#sustainability#sustainablefinance#aum

30

As the financial landscape continues to evolve, the art of fund management remains at the forefront of wealth creation and preservation. Effective fund management requires a delicate balance of astute decision-making, risk assessment, and the vision to seize lucrative opportunities. At the heart of successful fund management lies a commitment to research and analysis. Understanding market trends, assessing asset classes, and identifying promising investment prospects are fundamental elements that shape our investment strategies. In addition to that, maintaining a disciplined approach and staying true to our investment objectives are key factors in navigating both favourable and challenging market conditions.The fourth edition of PwC Luxembourg’s ‘EU ESG UCITS Poster’ highlights where ESG comes into this state of play, and showcases how the ESG landscape in the European asset and wealth management industry is evolving.🗞️Read more here: https://lnkd.in/dcfJQie #FundManagement #InvestmentStrategies #RiskManagement #ESG

7

ESG rating providers in EU to be regulatedRegulatory framework agreed by in EU countries with hopes of mitigating quantitative and qualitative data issues around ESG rating providers - an industry that will now be overseen by European Securities and Markets Authority (ESMA).So what will it mean from an operations standpoint? Read on to find out.#esgratings #esgreporting #esgstrategy #investmentoperations #fundmanagement #euregulations

The giant wave of fund managers adding ESG-related terms to fund names in Europe appears to have subsided... for now at least. Yet the EC’s freshly inked review of #SFDR may eventually kickstart another round of product tuning and renaming - with ESMA’s recent consultation on #sustainability language potentially influencing policy. In contrast, only a tiny number of funds in the U.S. added ESG words in recent years, and a rising number of funds have begun to drop them. The elephant meanwhile has entered the room: The SEC Names Rule, amended in September to cover #ESG terms, is expected to reshape the face of sustainable fund investing in the U.S. in coming years.

36

1 Comment