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ESMA fund-names guidelines

ESMA Guidelines on funds' names using ESG or sustainability-related terms (2024)

In forceApplies 2024-11-21Verified 2026-08-22

Scope

EU fund managers using ESG/Dictionary termSustainabilityThe capacity to maintain valued social, ecological and economic functions over time without depleting the foundations on which they depend or shifting unacceptable costs to others.Read the full definition terms in fund names

Penalties

National competent-authority supervision

Last verified

2026-08-22

In plain language

What this law does

Gates ESG/Dictionary termSustainabilityThe capacity to maintain valued social, ecological and economic functions over time without depleting the foundations on which they depend or shifting unacceptable costs to others.Read the full definition fund names: ≥80% of investments meeting E/S characteristics plus exclusion screens — PAB-level exclusions for 'sustainable'-named funds, CTB-level for transition/ESG terms.

Formal requirements

What the law requires

Reviewed provisions grouped by practical purpose. Use the official text for the full legal context.

Who and what it covers

  1. Generic Dictionary termEnvironmental ClaimA statement, symbol or representation that communicates or implies that a product, service, organisation or activity has a particular environmental characteristic, performance or effect.Read the full definition

    EmpCo Dir 2024/825 Annex I — fund-names and product-claim vocabulary · instrument-level citation

  2. Offset-based claim

    EmpCo Annex I — fund-names and product-claim vocabulary · instrument-level citation

  3. Dictionary termSustainabilityThe capacity to maintain valued social, ecological and economic functions over time without depleting the foundations on which they depend or shifting unacceptable costs to others.Read the full definition label

    EmpCo Annex I — fund-names and product-claim vocabulary · instrument-level citation

  4. Dictionary termDurabilityDurability is the extent to which a claimed climate or sustainability outcome is expected to last without being reversed, weakened or materially undermined over the relevant time horizon.Read the full definition /obsolescence practices

    EmpCo Annex I — fund-names and product-claim vocabulary · instrument-level citation

Metrics and KPIs

  1. Dictionary termESG fundAn investment fund that applies ESG criteria in its strategy — classified in the EU under SFDR Article 6, 8 or 9.Read the full definition name threshold — ≥80% of investments meet E/S characteristics; exclusion screens for "sustainable"-named funds (PAB-level); applies Nov 2024 (new) / May 2025 (existing).

    ESMA guidelines (2024) · instrument-level citation

Claims

Explore claims affected by this source

Search or filter the reviewed connections, then open one claim for its full market-by-market assessment.

  • “Sustainable fund” (product name)
    Why this claim is connected

    80% evidence; PAB/CTB exclusions; SFDR pre-contractual consistency

  • ESG fundDictionary termESG fundAn investment fund that applies ESG criteria in its strategy — classified in the EU under SFDR Article 6, 8 or 9.Read the full definition
    Why this claim is connected

    Same evidence as F01

  • ESG-screened portfolio
    Why this claim is connected

    Disclose screening criteria, exclusions, % coverage; if 'ESG' in name: 80% threshold + CTB exclusions.