ESMA promotes clarity in communications on ESG strategies
Executive Summary
ESMA published a thematic note on January 14, 2026, providing guidance on clear, fair, and not misleading communications regarding ESG strategies, specifically ESG integration and ESG exclusions, to mitigate greenwashing risks in non-regulatory materials like marketing. This matters because sustainability claims heavily influence investor decisions, and misleading communications can lead to supervisory actions, reputational damage, and loss of trust, aligning with existing EU rules under SFDR and related frameworks without imposing new disclosures. #
What Changed
This is not a formal regulatory change but supervisory guidance reinforcing four principles for non-regulatory communications (e.g., marketing materials, websites, investor presentations, voluntary reports): - Accurate: Claims must fairly represent sustainability profiles without exaggeration, falsehoods, omissions, cherry-picking, vagueness, or misleading ESG terminology/imagery. - Accessible: Information must be easy to understand and navigate, with layered substantiation in electronic formats for retail materials. - Substantiated: Backed by clear reasoning, facts, processes, and methodologies; disclose data limitations and comparison bases. - Up to date: Reflect current data, with timely disclosure of material changes and analysis dates. Practical do's/don'ts include explainin
What You Need To Do
- Review and update all non-regulatory ESG communications (marketing, websites, presentations, DDQs, PPMs) against the four principles and do's/don'ts
- Define and clearly explain ESG integration/exclusions (e
- Ensure consistency across channels, substantiate claims with accessible evidence, and avoid vagueness or overstatements
- Train compliance/marketing teams; monitor for updates as further thematic notes may follow
- Cross-reference with first note and regulations like SFDR, Cross-Border Distribution Regulation
Key Dates
Compliance Impact
Urgency: High – Immediate risk of enforcement for greenwashing in high-visibility ESG marketing, amid rising supervisory scrutiny; non-compliance threatens fines, remediation, and reputational harm as investor focus on sustainability grows. Proactive alignment builds trust and differentiates firms.
Who is Affected
Summary
ESMA promotes clarity in communications on ESG strategies 14 January 2026 Sustainable finance The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today a second thematic note on sustainability-related claims, focusing on ESG strategies. The note concentrates on ESG integration and ESG exclusions, as references to these strategies are often made by market participants and widely referenced in marketing communications directed to ...