ESMA_QA_2373
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/2373
Regulatory Context
Regulation : UCITS
Level 1 Regulation: Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
Level 2 Regulation: UCITS - Directive 2010/43/EU on organisational requirements, conflicts of interest, conduct of business, risk management and content of the agreement between a depositary and a management company
Level 3 Regulation: ESMA Guidelines on funds’ names using ESG or sustainability-related terms (ESMA34-1592494965-657)
Topic: Funds’ names
Subject Matter: Guidelines on funds’ names
Question
Submission Date: 13 December 2024
Is there a minimum level for investment funds with the term “sustainable” in their name to be considered to be investing “meaningfully” in sustainable investments?
ESMA Answer
Answer Date: 13-12-2024
The third indent of paragraph 18 of the Guidelines foresees that funds using “sustainable” terms should commit to invest meaningfully in sustainable investments referred to in Article 2(17) of the SFDR. While national competent authorities should carry out a case-by-case analysis of how any sustainability-related term is used in the name of a fund, they may find that investment funds with “sustainable” terms in their names investing less than 50% of the proportion of investments in sustainable investments are not “meaningfully investing in sustainable investments”. That amount could be higher, subject to the circumstances of the case.
This document was automatically extracted from the ESMA EMIR Q&A database.