# ESMA sustainability and investment regulation > Live situation record from CLSTR: https://clstr.news/situations/esma-sustainability-and-investment-regulation > Updated: 2026-10-19T03:30:00.000Z. Sources: 4. Developments: 2. The European Securities and Markets Authority (ESMA) has introduced new guidance to combat greenwashing and misleading communications within European financial markets. The measures focus on sustainability claims made by investment funds, bonds, and benchmarks, specifically regarding environmental and social impacts and transitions toward low-carbon economies. To ensure transparency, ESMA requires financial institutions to provide evidence-based explanations of their impact objectives, implementation strategies, and measurement methods. The regulator emphasizes that positive impacts must be demonstrable through key performance indicators (KPIs) and highlights the importance of concepts such as ‘intentionality’ and ‘additionality’. While these notes do not introduce new regulatory obligations, they clarify existing expectations as policymakers review the Sustainable Finance Disclosure Regulation (SFDR). In a related report, ESMA noted a significant increase in EU cross-border investment services, with retail client services rising 47% in 2025 compared to 2024. Luxembourg and Cyprus were identified as primary hubs for these cross-border providers. ## Timeline ### 2026-10-19: ESMA reports growth in EU cross-border investment and issues greenwashing guidance ESMA reports a 47% increase in EU cross-border retail investment services and issues new guidance to prevent misleading environmental and climate-related claims by financial firms. 2 sources. https://clstr.news/cluster/esma-reports-growth-in-eu-cross-border-investment-and-issues-greenwashing-guidance ### 2026-10-14: ESMA issues guidance to combat greenwashing in sustainability claims ESMA has issued new guidance to prevent greenwashing by requiring clearer evidence and transparency for sustainability and climate transition claims in investment funds and bonds. 2 sources. https://clstr.news/cluster/esma-issues-guidance-to-combat-greenwashing-in-sustainability-claims --- Cite as: ESMA sustainability and investment regulation. CLSTR, https://clstr.news/situations/esma-sustainability-and-investment-regulation