In May 2024, the European Securities and Markets Authority (ESMA) published final guidelines (Guidelines) for the use of terms related to environmental, social and/or governance (ESG) or sustainability in fund names. As proposed, the Guidelines require, among other things, funds using ESG- and sustainability-related terms in their names to have at least 80% of their investments aligned with such terms. The Guidelines have different investment criteria for funds depending on whether a fund’s name includes transition-, social- or governance-related terms; environmental- or impact-related terms; or sustainability-related terms. This article discusses the Guidelines and how they differ from ESMA’s proposal, with commentary from Andrew Henderson, partner, and Chris Ormond, counsel, at Goodwin Procter LLP. See “Key Developments & Considerations in ESG Regulations for Asset Managers Navigating Global Compliance Duties” (May 23, 2024).