The Cyprus Securities and Exchange Commission (CySEC) has called on investment fund managers to take note of new guidance issued by the European Securities and Markets Authority (ESMA) on how to make clear, fair and not misleading sustainability-related claims.

In a circular issued on October 14, 2025, CySEC informed Cyprus-based investment fund managers that ESMA has begun publishing a series of thematic notes offering guidance on environmental, social and governance (ESG) communication.

The regulator said the thematic notes aim “to inform and educate market participants, as well as to formulate expectations when making sustainability claims, through a series of good and bad practices on specific topics”.

The notes, CySEC explained, are based on four key principles that firms should follow when making any kind of sustainability-related claim: accuracy, accessibility, substantiation and up-to-dateness.

The focus is on claims made in non-regulatory documents such as marketing materials, websites, and corporate reports, rather than in official legal disclosures.

CySEC highlighted that the initiative builds on ESMA’s earlier Report on Greenwashing, which identified risks and inconsistencies in how firms communicate their ESG credentials and sustainability commitments.

The first thematic note, titled ESG Credentials, was published on July 1, 2025, and examines how firms present their ESG performance, including claims about industry initiatives, labels and awards, and comparisons to peers.

A second thematic note is expected to be published by the end of 2025, expanding the scope of ESMA’s guidance to further areas of sustainability communication.

CySEC urged regulated entities to stay updated with ESMA’s ongoing publications and to consider the guidance contained in these notes when fulfilling their ESG obligations.

“CySEC urges fund managers to ensure they remain updated regarding the publication of such thematic notes and expects that the guidance provided is considered when complying with their relevant ESG obligations,” said Vice Chairman Panikkos Vakkos.