ESMA Thematic Note on ESG Strategies Clarity
Summary
The European Securities and Markets Authority (ESMA) has published a thematic note on ESG strategies, focusing on ESG integration and exclusions. The note aims to promote clarity in communications directed at retail investors and provides practical do's and don'ts to mitigate greenwashing risks.
What changed
The European Securities and Markets Authority (ESMA) has issued a thematic note addressing the clarity of communications regarding ESG (Environmental, Social, and Governance) strategies, specifically focusing on ESG integration and ESG exclusions. This guidance is intended to combat greenwashing risks by urging market participants to be transparent about what these terms mean in their marketing materials, particularly when targeting retail investors. The note provides practical examples of good and poor practices observed in the market.
Financial market participants, including fund managers and financial advisers, should review their communications related to ESG strategies to ensure they are clear, fair, and not misleading. The guidance emphasizes the need for transparency and provides actionable advice to avoid misrepresenting sustainability claims. While non-binding, adherence to these recommendations is crucial for maintaining investor trust and avoiding potential regulatory scrutiny related to greenwashing.
Source document (simplified)
ESMA promotes clarity in communications on ESG strategies
Sustainable finance 14/01/2026 The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today a second thematic note on sustainability-related claims, focusing on ESG strategies.
The note concentrates on ESG integration and ESG exclusions, as references to these strategies are often made by market participants and widely referenced in marketing communications directed to retail investors.
ESG integration and ESG exclusions can mean different things to different market participants. Lack of transparency when using these terms poses a notable greenwashing risk to investors. The aim of the note is not to define these strategies, but to call on market participants to be clear about what they mean when referencing them.
Similarly to the first thematic note on ESG credentials, this publication offers practical do’s and don’ts for making sustainability claims. These are illustrated through concrete examples of good and poor practices that are based on observed market practices.
Further information:
Cristina Bonillo
Senior Communications Officer
press@esma.europa.eu
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| Date | Reference | Title | Download | Select |
| --- | --- | --- | --- | --- |
| 14/01/2026 | ESMA36-429234738-165 | Thematic notes on clear, fair and not misleading sustainability-related claims: ESG strategies | | |
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