C809 - ESMA publication of thematic notes on clear, fair & not misleading sustainability-related claims – Third and Fourth Notes: Impact Claims and Transition Claims

The circular builds on earlier guidance communicated through Circular C752 and signals continued supervisory attention to how sustainability statements are framed, substantiated and disclosed. For compliance teams, the practical message is that ESG marketing language is now subject to a clear, fair and not misleading standard with supervisory expectations set out in published guidance. Firms should review client-facing materials, fund documentation, marketing decks and website content for claims about positive environmental or social impact, and for statements describing transition pathways, ensuring each claim is supported by credible evidence, clearly defined and not overstated.

Impact and transition claims carry elevated risk because they are inherently forward-looking or outcome-based and are therefore harder to substantiate. Firms should consider whether existing product governance, financial promotions and disclosure controls adequately capture these claim types, and whether staff responsible for marketing and product development understand the expectations. The notes are guidance rather than binding rules, but CySEC's explicit expectation that they be considered when meeting ESG obligations effectively raises the standard of care.

Investment fund managers and investment firms in Cyprus should document how they have assessed their materials against the notes and be prepared to explain their approach to supervisors. The action required is proportionate review and updating rather than wholesale change, but the tone of the circular suggests ESG claim quality will remain a supervisory priority.