ESMA promotes clarity in sustainability-related communications

The European Securities and Markets Authority (ESMA) has published a thematic note on sustainability-related claims used in non-regulatory communications. The note outlines four guiding principles for making sustainability claims, aligned with previous publications from the European Insurance and Occupational Pensions Authority (EIOPA) and the European Banking Authority (EBA). The publication provides practical do's and don'ts, illustrated through concrete examples of good and poor practices, based on observed market practices. The thematic note focuses on sustainability credentials such as labels or awards, which are commonly used in retail-investor focused communications. The note aims to support market participants in making clear, fair, and not misleading sustainability claims. It does not introduce new regulatory or reporting requirements. The publication is part of ESMA's efforts to promote clarity in sustainability-related communications. The note is intended to help market participants avoid making misleading claims and ensure that investors have accurate information. By providing guidance on sustainability claims, ESMA aims to increase transparency and trust in the financial markets. The thematic note is a useful resource for market participants, investors, and other stakeholders interested in sustainable finance. Overall, the publication is an important step towards promoting clarity and fairness in sustainability-related communications.