The CSA’s intention is to set clear expectations for disclosure depending on how ESG factors are integrated into the investment process of a fund.
Based on the existing regulatory framework, this guidance touches upon various aspects of fund disclosure, including investment objectives, fund names, investment strategies, risks, ongoing disclosure requirements, and sales communications.
It is designed to cater to different types of investment funds, whether they market themselves as ESG-focused or include ESG considerations as part of their investment strategy.
Stan Magidson, CSA chair and CEO of the Alberta Securities Commission highlighted the importance of this updated guidance in the context of growing interest in ESG investing and the risks of greenwashing.
Magidson stated, “Amid sustained public interest in ESG investing and the potential for greenwashing, the CSA’s updated guidance is aimed at bringing greater clarity and consistency to ESG-related fund disclosure and sales communications, which will ultimately help investors make more informed investment decisions.”
