Mauritius Financial Services Commission issues ESG fund disclosure and reporting guidelines with two-thirds NAV threshold and certification requirements

The Mauritius Financial Services Commission has issued disclosure and reporting guidelines for ESG funds, setting conditions under which authorised Collective Investment Schemes and Closed-end Funds can be treated and marketed as “ESG Schemes” and specifying required investor disclosures, annual sustainability reporting and ongoing monitoring. The framework also establishes a public Register of ESG Schemes on the Commission’s website and takes effect on 24 March 2025. The guidelines apply where ESG factors are the key investment focus and strategy, defined as at least two-thirds of the scheme’s net asset value being ESG-focused, with a 90-day remediation period if the threshold is no longer met. Only qualifying ESG Schemes may use ESG-related terms such as “ESG”, “Green” or “Sustainability” in their name or marketing, and funds established outside Mauritius may be registered by way of continuation if authorised locally. Offering documents must disclose the ESG focus and the criteria, methodologies or metrics used, the ESG investment strategy and binding elements, the proportion of net asset value used to meet the ESG objective and how the remainder is invested, any ESG benchmark or reference benchmark and relevant risks. ESG Schemes must publish specified information on their website (where applicable) and submit an annual Sustainability Report to the Commission and investors covering, among other items, progress against the ESG focus, the actual proportion of qualifying investments, benchmark comparisons (if any), actions taken, explanations for non-compliance with the two-thirds requirement and relevant methodology changes. New applications submitted on or after the effective date, and existing funds changing their objective to an ESG focus, must include either independent third-party certification or self-certification that the objective and strategy align with the United Nations Sustainable Development Goals or other widely accepted goals. Sustainability Report disclosures must be accompanied by independent third-party certification confirming that investments are compliant with the offering document. Existing authorised schemes that qualify as ESG Schemes must apply for registration and submit revised offering documents (with the required certification) by 01 August 2025.