On 31 May 2022, the European Securities and Markets Authority (ESMA) published a supervisory briefing that is intended to enhance convergence among Member State competent authorities (NCAs) by addressing potential issues arising from the supervision of sustainability-related disclosures as well as the integration of sustainability risks by fund managers and the design of common supervisory practices. This common approach is designed to increase transparency for investors as well as avoiding the practice of ‘greenwashing’.

The supervisory briefing covers:

  • Guidance for the supervision of fund documentation and marketing material, as well as guiding principles on the use of sustainability-related terms in funds’ names.
  • Guidance for convergent supervision of the integration of sustainability risks by alternative investment fund managers and UCITS managers.

The content of this supervisory briefing is not subject to any ‘comply or explain’ mechanism for NCAs and is non-binding.