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On 14 January 2026, the European Securities and Markets Authority (ESMA) published thematic notes on clear, fair and not misleading sustainability-related claims to address greenwashing risks (the “Notes”).
ESMA principles and good practices
ESMA has articulated four guiding principles for market participants, aligned with those in the 2024 EIOPA Opinion and the EBA's Final Report on greenwashing, and has set out corresponding good practices. The principles are accuracy, accessibility, substantiality, and being up to date.
Clarity in ESG marketing communications
References to ESG strategies (particularly ESG integration and ESG exclusions) feature prominently in marketing communications directed at retail investors. Such strategies must be explained in clear and comprehensible terms. Market participants are obliged to ensure that any communications to investors concerning the definition and application of ESG integration and ESG exclusions are clear, fair and not misleading.
Guidance on ESG integration
The Notes outline good practices for claims in this area. They emphasise the need for clarity regarding the definition of ESG integration used in communications, the impact of ESG considerations on the product, portfolio or relevant asset classes, and whether the strategy adopts a single- or double-materiality lens. As an illustration of poor practice, the Notes caution against deploying “ESG integration” as a catch-all label for a range of distinct ESG approaches.
Guidance on ESG exclusions
The Notes recommend that firms set out, in plain language, the process followed and the ESG criteria and thresholds applied to implement exclusions. The Notes also identify poor practices in this context and provide concrete examples.
Further examples of practices
Finally, the Notes provide further examples of both good and poor practices applicable to ESG integration and ESG exclusion strategies.
Should you have any questions on the above, do not hesitate to contact one of our experts in the regulatory team.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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