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ESMA Warns on “Misleading” Use of ESG-related Terms by Funds

Research by the European regulator shows that ESG-related named funds attract more inflows, raising concerns about potential greenwashing.

Growing use of ESG-related language in fund names and documentation to attract higher inflows is increasing greenwashing risks, according to new research by the European Securities and Markets Authority (ESMA).   Julien Mazzacurati, Senior Economist at ESMA and co-author of the report, noted that analysis shows a “consistent influx” of capital…

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