The European Securities and Markets Authority has published two additional thematic notes on sustainability-related claims, addressing impact claims by funds and bonds and climate transition claims across funds, bonds and benchmarks. The notes extend its earlier work on ESG credentials and strategies, using observed good and poor practices to explain how non-regulatory communications can meet the existing principle that information must be clear, fair and not misleading. For impact claims, market participants should explain the environmental or social problem addressed, how positive impact is expected to arise and how results will be measured. Communications should distinguish investee impact from the investor’s contribution, substantiate claims of additionality and use relevant metrics rather than presenting exclusions or standard ESG practices as evidence of impact. Climate transition claims should define the ambition, metrics, baseline and milestones, connect these to a credible implementation strategy and disclose material assumptions, dependencies and data limitations. Firms should also report progress consistently and explain delays, methodological changes or departures from the stated trajectory. The notes provide practical guidance rather than new regulatory requirements and do not prescribe a particular approach or level of sustainability ambition, including in the context of the Sustainable Finance Disclosure Regulation review.
European Securities and Markets Authority publishes two thematic notes on impact and climate transition claims
The European Securities and Markets Authority has issued two thematic notes on impact and climate transition claims in non-regulatory communications. Market participants should substantiate impact, distinguish investor and investee contributions, explain transition plans and report progress against clear metrics and assumptions. The notes extend earlier greenwashing guidance but create no new regulatory requirements.