ESMA provides guidance on sustainability risks

On 31 May 2021, ESMA published a supervisory briefing setting out guidance on the integration of sustainability risks in the area of asset management.

The guidance is aimed at national competent authorities (NCAs) to help them to effectively supervise investment funds. It is intended to ensure convergence across the EU in the supervision of investment funds with sustainability features and help combat greenwashing. The guidance includes supervisory actions relating to:

• Fund documentation and marketing material; and
• Integration of sustainability risks by alternative investment fund managers (AIFMs) and UCITS managers.

ESMA will now work closely with NCAs to enforce the guidance.