LONDON (Reuters) – The European Union’s securities watchdog (ESMA) set out draft proposals on Friday to restrict how investment funds can tout their environmental, social and governance (ESG) credentials to attract cash.
“In order not to mislead investors, ESMA believes that ESG- and sustainability-related terms in funds’ names should be supported in a material way by evidence of sustainability characteristics or objectives that are reflected fairly and consistently in the fund’s investment objectives and policy,” the watchdog said in a statement.
(Reporting by Huw Jones; Editing by Mark Potter)
