News in the spotlight: ESMA Issues Guidance to Help Firms Avoid Greenwashing in ESG Strategies
The European Securities and Markets Authority (ESMA) issued guidance to clarify its supervisory expectations for investment firms using ESG or sustainability-related terms in fund names and strategies. Following a review across several national competent authorities, ESMA identified instances where firms made potentially misleading sustainability-related claims, lacking sufficient evidence, transparency, or alignment with investment processes.
Products and Services
Diginex Acquires Plan A to Strengthen ESG and Carbon Reporting Capabilities
Diginex Limited (NASDAQ: DGNX), a sustainability-focused technology company, has completed the acquisition of Berlin-based carbon and ESG management platform Plan A for approximately USD 64 million. The deal includes an upfront consideration of around USD 45 million in Diginex shares and USD 19 million in performance-based earn-outs. Plan A, which serves over 1,500 clients including BMW and Visa, offers AI-driven carbon accounting and decarbonization technology to help companies meet regulatory requirements and net-zero goals. This acquisition positions Diginex to provide an end-to-end ESG solution by integrating Plan A’s data automation and climate impact capabilities with Diginex’s ESG reporting tools. The companies will maintain their respective platforms while exploring cross-platform functionalities. The merger supports Diginex’s goal to streamline ESG workflows for clients and aligns with growing regulatory mandates such as the EU’s CSRD.
ALTÉRRA and BBVA Launch USD 1.2 Billion Climate Fund to Drive Decarbonization
BBVA and ALTÉRRA have established a strategic partnership to launch a new climate fund with a target size of USD 1.2 billion. ALTÉRRA Climate, backed by a USD 250 million anchor investment split equally between BBVA and ALTÉRRA, aims to mobilize private capital to advance global climate solutions. The fund will invest in companies across sectors such as renewable energy, sustainable agriculture, and technologies that drive decarbonization. It will focus on both developed and emerging markets, aligning with global climate goals including those outlined in the Paris Agreement. The partnership reflects BBVA’s broader commitment to sustainability and its goal of channeling USD 700 billion in sustainable finance by 2025 and 2029. ALTÉRRA, a climate-focused investment platform launched during COP28, was created by Lunate with support from the UAE government.
Guinness Global Investors launches sustainability-focused Global Environment fund
Guinness Global Investors has introduced the Guinness Global Environment fund, aiming to invest in companies addressing key sustainability challenges tied to energy, climate, waste, and land. The actively managed fund focuses on businesses providing solutions that contribute to long-term environmental improvement, particularly those aligned with the transition to a lower-carbon economy. The fund targets firms generating at least 50% of their revenues from environmental themes, including clean energy, resource efficiency, and sustainable agriculture. The investment approach incorporates thematic and financial analysis, alongside environmental, social, and governance (ESG) factors. The fund will be managed by analysts Edward Guinness and Lydia Cockcroft, with an investment universe expected to range between 30 and 60 companies. It is structured as an Article 9 product under the EU Sustainable Finance Disclosure Regulation (SFDR), reflecting a high sustainability objective.
Regulations, Law and Frameworks
ESMA Issues Guidance to Help Firms Avoid Greenwashing in ESG Strategies
The European Securities and Markets Authority (ESMA) issued guidance to clarify its supervisory expectations for investment firms using ESG or sustainability-related terms in fund names and strategies. Following a review across several national competent authorities, ESMA identified instances where firms made potentially misleading sustainability-related claims, lacking sufficient evidence, transparency, or alignment with investment processes. The thematic note outlines key principles for avoiding greenwashing, focusing on ensuring that ESG-related claims are specific, substantiated, and proportionate to the firm’s actual strategy. ESMA emphasizes the importance of clarity, accurate disclosures, and integration of ESG considerations in investment processes. Firms are encouraged to align terminology with actual portfolio composition and to ensure governance and internal controls support sustainability claims.
ESAs Issue Joint ESG Stress Testing Guidelines Across Financial Sectors
The European Supervisory Authorities (EBA, EIOPA and ESMA) have issued joint Guidelines on environmental, social and governance (ESG) stress testing to harmonise how ESG risks are integrated into supervisory stress tests across the EU financial sector. The Guidelines offer national banking and insurance supervisors detailed direction on embedding ESG risks into existing stress testing frameworks and into complementary assessments of ESG impacts. They address both methodological design and the organisational and governance arrangements needed to run ESG-inclusive exercises. The framework promotes a consistent, long-term approach to ESG stress testing, while retaining flexibility to reflect future methodological developments and improved data availability. It explicitly does not create new obligations for authorities to conduct ESG-specific supervisory stress tests but sets common standards where such tests are undertaken.
Net Zero Commitments
Bain Partners with 1PointFive for First Direct Air Capture Carbon Removal Deal
Bain and Company has entered into its first direct air capture (DAC) carbon removal credits agreement with 1PointFive, a subsidiary of Occidental (Oxy). Under the deal, Bain will purchase credits from 1PointFive’s STRATOS facility, which is currently under construction in Texas and expected to be the world’s largest DAC plant when operational. This agreement supports Bain’s commitment to achieve net-negative carbon emissions across its operations by removing more carbon than it emits. The deal aligns with growing interest in high-quality, durable carbon removal solutions to complement emission reductions. STRATOS, projected to capture up to 500,000 metric tons of CO2 annually, uses Carbon Engineering’s DAC technology and is expected to begin operations in mid-2025. The partnership marks a step forward in advancing market-based climate solutions and demonstrates Bain’s role in supporting emerging climate technologies.
Leadership Announcements
Big Issue Invest names ex-Standard Bank CEO Craig Bond as new chair
Big Issue Invest, the social investment arm of the Big Issue Group, has appointed Jenny Knott as its new Chair, effective 14 January 2026. Knott brings extensive senior leadership experience, having served as CEO of Standard Bank from 2010 to 2015, alongside non-executive director roles at the British Business Bank, Simplyhealth, and Camco. She succeeds Mark Porter, who steps down after two years as Chair, during which the organisation marked its 20th anniversary and appointed Holger Westphely as Managing Director in August 2025. Porter’s tenure saw robust growth in investment activities. Knott highlighted the organisation’s success in balancing social impact with financial returns amid persistent social inequality, praising its support for innovative social enterprises that deliver life-changing opportunities at scale.