Better names for ESG and sustainable investment funds

Consumers who want to buy investment funds that do not harm the planet or people are often misled about the sustainability content of the funds on offer. The European Securities and Markets Authority (ESMA) has now proposed minimum sustainability requirements for funds that contain words like 'green', 'sustainable', 'ESG' etc. in their names because the name is often the first feature of a fund that potential retail investors notice and because names can, and often do, contain misleading promises. Narrowing the gap between an investment fund's sustainability promise and the reality of its contents is a welcome improvement, but it will not solve the underlying problems in the sustainable investment industry that create the conditions for greenwashing.