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illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: Nordea Asset Management has added or retained the term “sustainable” in the names of 17 funds in its Nordea 1 SICAV range
• This move comes in preparation for new ESMA fund naming rules that take effect in May 2025
• The asset manager stated only minimal changes were needed, as its funds already meet high sustainability standards
🔭 The context: The European Securities and Markets Authority (ESMA) issued new guidelines in 2024 to combat greenwashing in fund naming
• The rules require funds using ESG or climate-related terms to invest at least 80% in assets that align with sustainability objectives and comply with Paris-Aligned Benchmark exclusions
• Many funds across the EU may need to revise their names or restructure to meet these thresholds
🌍 Why it matters for the planet: Clearer and stricter ESG fund labelling supports transparency and accountability in sustainable investing
• It helps ensure that capital genuinely flows to environmentally responsible assets
• Nordea’s early compliance reinforces trust in green finance and sets a standard for the industry.
⏭️ What's next: Funds across the EU will need to reassess asset allocations or naming by May 21, 2025
• The regulation could lead to a significant reshaping of the sustainable fund market
• Investors will likely see more reliable labelling in ESG products
💬 One quote: “Our alignment with ESMA’s new guidelines underscores our ongoing dedication to delivering clear, transparent, and effective RI solutions.” – Nils Bolmstrand, CEO, Nordea Asset Management
📈 One stat: Two-thirds of ESG-labelled EU funds may need to sell assets or change their names to comply with ESMA's new guidelines
See here detailed sustainability performance of companies like Nordea, BlackRock, and UBS
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