EU raises bar for using ESG-related terms in fund names

The guidelines are expected to be approved and published in 2024 and some changes have already been communicated. Fund managers to be able to use sustainability-related terms in fund names, the manager should: Apply the 80% minimum proportion of investments used to meet the sustainability characteristics or objectives. Apply the Paris-aligned Benchmark exclusions and Invest meaningfully in sustainable investments defined under the Sustainable Finance Disclosure Regulation. Read more on the coming change.