Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • State Farm Still Wants a 30% Rate Increase in California
  • 2024 P/C Combined Ratio Best in More Than a Decade
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

EU Finalizes Investment Fund Labels to Combat Greenwashing

By Huw Jones | May 15, 2024
Email This Subscribe to Newsletter
  • Article

The European Union’s securities watchdog confirmed on Tuesday final guidelines on when investment funds can label themselves as being “sustainable” without being accused of greenwashing.

Trillions of dollars globally have flowed into investments that promote their green attractions, but regulators say that some funds exaggerate sustainability claims.

The European Securities and Markets Authority (ESMA) said a fund that has any environmental, social or governance (ESG) related words in its name must have at least 80% of assets that meet ESG objectives in accordance with the binding elements of its stated investment strategy.

The minimum is in line with draft guidance that ESMA put out to public consultation.

The watchdog ditched its initial plan for a 50% threshold for investment funds that label themselves as being sustainable.

ESMA said that it has decided instead to introduce a commitment to invest ‘meaningfully’ at all times in sustainable investments, when using any sustainability-related words in a fund’s name.

It has also introduced a new category for transition-related terms, which also includes the 80% minimum rule, to avoid penalizing investment in companies that derive part of their revenue from fossil fuels, thus promoting strategies aimed at moving to a greener economy.

“The objective of the guidelines is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund names, and to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in fund names,” ESMA said in a statement.

Managers of existing funds have about nine months to comply, while new funds will have to comply sooner.

Britain, now outside the EU, will introduce from the end of May its first bespoke labeling rule to combat greenwashing in finance, with regulators in the United States also taking action.

(Reporting by Huw Jones; Editing by Susan Fenton)

Copyright 2025 Reuters. Click for restrictions.

Topics Europe

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Hack of Contractor Was at Root of Massive Federal Data Breach
Ice Cream Sandwich Maker Blames Agent for Lack of Recall Insurance After $4.5M Loss
Bayer Seeks Roundup Settlement, Explores Monsanto Bankruptcy: Reports
2024 P/C Insurance Combined Ratio Best in More Than a Decade

Written By Huw Jones

More From Author

The most important insurance news,
in your inbox every business day.

Get the insurance industry's trusted newsletter

Email This Subscribe to Newsletter
  • Categories: International & Reinsurance NewsTopics: Climate Change, environmental social and governance (ESG) criteria, greenwashing, insurance investments, net zero emissions, sustainable investments
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
EEOC_SealAustin Bar to Pay $42K Over Pregnancy Discrimination Lawsuit
EU to Propose Removing Business Barriers to Enhance Competitiveness Amid US Tariffs
Former Progressive CEO Renwick, 69, Dies
Hack of Contractor Was at Root of Massive Federal Data Breach
More News Features

Read This Next

  • EU Finalizes Investment Fund Labels to Combat Greenwashing
  • US House Bill Reintroduced to Rid Federal Insurance Office of Subpoena Power
  • Coinbase Hackers Had Access to Customer Data Since January
  • Despite Backlash From Trump, DEI Hasn't Disappeared at US Companies
  • Lloyd's Has 'Laser Focus' on Oversight of Coverholders to Proactively Avoid Market Risk

Insurance Jobs

  • Claim Operations Specialist - Houston, TX
  • Commercial and Privacy Counsel – Chicago, IL (Remote) - Chicago, IL
  • Counsel - Newark, DE
  • Sales Agent – Richardson - Richardson, TX
  • Product Management (Technical) Lead Consultant - North Carolina, NC
MyNewMarkets
  • 5 Ways to Prepare for Healthcare Liability Changes in 2025
  • What's Next For Workers' Comp?
  • Soft D&O Market May Come to an End as Risk Complexities Rise
  • Exclusions: Active Assailant Coverage - Oh My!
  • 10 Things to Know About Insuring Boats & Marinas
Claims Journal
  • Court Says Google, AI Firm Must Face Mother's Lawsuit Over Suicide of Son
  • State Farm Still Wants a 30% Rate Increase in California
  • No NOAA Large-Disaster Data Could Hurt Insurer Grasp of Secondary Perils, Says AM Best
  • Marks & Spencer Says Cyberattack to Cost $403 Million
  • APCIA Says Record Shows 'Minimal Complaints' on Hurricane Milton, Helene Claims
Academy of Insurance education
  • May 22 Commercial Property: Five Bombs and How to Defuse Them
  • June 5 E&O and Hard Markets: How Trying to Keep a Client Might Cause Trouble
  • June 12 Rating AI Tools: Balancing Functionality and Security
  • June 19 Can You Hear Me? Yes, I Am Listening!

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map