Thematic notes on clear, fair, and not misleading sustainability-related claims - transition claims
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ESMA's fourth thematic note against greenwashing, on climate transition claims. It recalls four principles (accurate, accessible, substantiated and up to date) and provides examples of good and poor practice for issuers, funds, benchmarks and bonds.
Key points
- It creates no new obligations: it is educational and based on observed practices.
- Calls for explaining the transition ambition and the scenarios and decarbonisation pathways behind it.
- Finds limited systematic reporting on progress against announced targets.
Who is affected
Issuers, asset managers, benchmark administrators and investment service providers communicating climate goals.
Plain-language version
ESMA, the EU watchdog for stock markets and investment products, has published a guide against greenwashing, claiming to be greener than you really are. It focuses on climate transition promises by companies, funds and bonds: they must be accurate, clear, backed up and kept up to date. It finds few report whether they are meeting their targets. Useful if you invest in 'sustainable' products.
Read the original document →
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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