Financial firms dropped terms like “ESG” (Environmental, Social and Governance) and “sustainable” from the names of hundreds of their funds in the year before new European Union rules to clamp down on greenwashing came into force in late May, new analysis shows.
The rules from the European Securities and Markets Authority (ESMA) say that funds with certain sustainability or environmental-related terms in their names cannot invest in companies that get more than a certain share of their revenue from coal, oil, gas or particularly polluting electricity generation.
Those funds now also have to show that 80% of their investments meet the ESG objectives referred to in their titles.
Before the new regulation was introduced, the fund managers that dropped environmental and other sustainability terms from the highest percentage of their fund names were State Street, UBS and Northern Trust, the analysis said. It estimates that around 674 funds have done this overall.
Alison Schultz, an analyst at the German campaign group Finanzwende who conducted the research, said fund managers had earlier betrayed investors’ trust by labelling their funds wrongly and misdirecting money that should have helped to advance the green transition towards supporting business as usual.
“Consumers bought the funds because they wanted to invest sustainably,” she said, adding that “renaming [them] instead of divesting undermines the credibility of a market that depends on financial products being what they claim to be”.
Many fund managers have replaced ESG terminology in the titles of their funds with alternative words like “screened”, “selection” or “committed”, according to research by Finanzwende, Urgewald and Facing Finance and a separate analysis from Morningstar Analytics, which sells research and information to investors.
For example, Invesco changed its “Sustainable Eurozone Equity Fund” into the “Transition Eurozone Equity Fund” in March. Fund documents show that in April 2025 it had investments in Italy’s Enel and Germany’s E.ON, two utilities that sell gas and fossil-fuel electricity.
“Screened” and “transition” funds
Funds with words like “screened” or “transition” in their name can continue to invest as much as they want in oil, gas and coal businesses under the new EU regulations. Hortense Bioy, head of sustainable investing research at Morningstar, told Climate Home the use of words like this suggests fund managers “are still keen to offer products that signal ESG characteristics in the name”.
According to earlier research on the same topic released in March by Urgewald and Facing Finance, more than half of the funds that have dropped environmental-related terms from their names held shares in large fossil fuel companies – with the investments worth around €14bn ($16bn). The name changes mean that they can keep those investments.
While some have gone down this path, Morningstar analysis suggests others have done the opposite – ditching fossil fuels investments and keeping their green names. Leading global fund managers like US-based BlackRock, the world’s largest asset manager, have taken a varied approach across their portfolios.
An email BlackRock sent to clients on March 18, which it shared with Climate Home, said it had responded to the ESMA naming guidelines by changing the names of 56 funds worth $51bn to drop sustainability terms. An example it gave was dropping “ESG” from the BSF Systematic ESG World Equity Fund.
On the other hand, the email said it had kept the ESG names of another 60 funds worth $92bn, “enhancing the sustainable characteristics”.
Funds drop Total, Galp and Eni
Morningstar found that ESG funds which did not rebrand themselves as less green were investing less in fossil fuel companies like TotalEnergies, Galp and Eni in March this year compared to May 2024.
“It is fair to assume that part of the decline can be attributed to stock divestments made to comply with the ESMA guidelines,” their analysis said.
While State Street renamed the highest percentage of these funds, other firms – like BlackRock and Amundi – have lots of sustainability-related funds that were grouped under broad EU green financial disclosure categories but never had these now-regulated terms in their names.
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Last July, Climate Home revealed that EU-based funds like Blackrock’s, which claimed to be environmentally friendly, held shares worth at least $65 million in major coal companies. Under the new rules, they can continue as long as they don’t have “environmental” or “sustainable” terms in their name.
While funds with what the ESMA calls environmental, impact or sustainability related terms cannot invest in companies with fossil fuel revenues above a certain threshold (see chart above), funds with transition-related terms still can. These words include “transition”, “improve”, “progress”, “evolution”, “transformation” and “net zero”.
BlackRock also said it had either changed the names or investment methodologies of 18 funds worth $42bn for a “clearer alignment to transition” in response to the new rules.
Investors notified
Fund managers are required to notify investors of the name changes, usually in prospectuses sent to professional investment managers.
Bioy of Morningstar said she had seen many of these notifications and, in some of them, fund managers told investors they were lowering their sustainable investment allocations. “Some of them are not as ESG as they used to be,” she said. “They’ve become almost like traditional funds.”
But she said that firms that have renamed their funds cannot necessarily be accused of greenwashing before because there were “no rules” over what terms like ESG and sustainable meant. Investors now need to be educated on what these terms legally mean according to the new rules, she added.
The rules only affect funds marketed in EU countries but, according to Bioy, that is the vast majority of the world’s funds that make green claims, even though they make up a small proportion of the total.
Asked to comment, a BlackRock spokesperson told Climate Home the investment objectives of its funds “are clearly disclosed in each fund’s prospectus and on BlackRock’s website”.
Funds “are managed in line with applicable regulations governing sustainable investing”, they said, adding that “for investors that have decarbonization investment objectives we offer a range of products that provide such exposure”.
At the time of publication, State Street, UBS, Northern Trust and Invesco had not responded to requests for comment.
The post As EU acts to stop greenwash, funds drop climate claims from their names appeared first on Climate Home News.
As EU acts to stop greenwash, funds drop climate claims from their names
Climate Change
Fossil fuel crisis offers chance to speed up energy transition, ministers say
The fossil fuel crisis triggered by the Iran war should push nations to speed up their shift towards clean energy and break their dependence on volatile sources, energy and climate ministers said on Tuesday.
Murat Kurum, Türkiye’s climate minister and COP31 president, said the crisis was yet another demonstration that fossil fuels cannot guarantee energy security, making it crucial for countries to diversify by investing in renewable energy.
“We know that relying solely on fossil fuels means walking towards volatility, insecurity and climate collapse,” he told fellow ministers at the Petersberg Climate Dialogue, an annual gathering in Berlin that traditionally opens the global climate diplomacy calendar.
Ministers from more than 30 countries, along with United Nations representatives, are meeting until Wednesday to lay the groundwork for a deal to accelerate climate action at COP31 in Antalya, Türkiye.
They will debate how to ramp up efforts to cut greenhouse gas emissions, mobilise climate finance amid shrinking international aid budgets, and leverage a strained multilateral system to deliver results.
Fossil fuels not the answer
The gathering is taking place in the shadow of what some energy analysts have described as the largest oil and gas supply disruption in history. The conflict in the Middle East has sent oil and gas prices soaring, with growing ripple effects on food production and industrial manufacturing.
Australia’s escalating fuel crisis meant the country’s energy minister Chris Bowen, who will also be in charge of COP31 negotiations, cancelled his trip to the Berlin summit. Joining by videolink, he said the crisis is a “unique opportunity” to underline the message that “energy reliability, energy sovereignty and energy security are entirely in keeping with strong decarbonisation”.
“Doubling down on fossil fuels is not the answer to this crisis,” he added. “Wind cannot be subject to a sanction, the sun cannot be interrupted by a blockade. These are all reliable forms of energy, which must be supported by storage”.
Electrification is a “megatrend”
Echoing Bowen’s remarks, Germany’s climate minister Carsten Schneider said the current crisis will be “an accelerator [of the energy transition] because it will help many people understand and realise how dependent we are on fossil fuels”.
He added that “electrification is turning into a global megatrend” but called for more discussion on how to ensure that industry and transport become less reliant on oil and gas across the world.
At last year’s climate talks, countries failed to agree to start a process to draft a global plan to shift away from oil, coal and gas. But the Brazilian COP30 presidency is taking it upon itself to deliver this roadmap before the summit in Antalya.
Discussions are expected to kick into higher gear at the first-ever conference on transitioning away from fossil fuels due to start at the end of this week in Colombia. COP30 president André Corrêa do Lago has said the roadmap should be published in September.
Clear plans needed
Addressing the Petersberg summit, the head of the United Nations António Guterres said that transition roadmaps can help countries manage urgent choices during the ongoing fuel crisis while advancing a just transition to a clean and secure energy future.
“We must respond to the energy crisis without deepening the climate crisis,” he added. “Short-term measures must not lock in long-term fossil fuel dependence and expansion”.
The ministers argued that, despite the US withdrawal from international climate diplomacy under President Trump, other countries remained committed to working together to tackle the climate crisis.
But Türkiye’s Kurum scolded the more than 40 governments that have not yet published their national climate plans, more than a year after the official UN deadline. These are mostly smaller nations, but the group of laggards also includes Vietnam, Argentina and Egypt.
“We will ensure that countries fulfil the fundamental requirements of the COP,” he said, adding that his team is working intensely with the UN to ensure these plans – known as nationally determined contributions – are submitted.
“Without diagnosis, you can’t treat”, he said.
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Fossil fuel crisis offers chance to speed up energy transition, ministers say
Climate Change
Earth Day is an opportunity for communities to show the way on climate action
Ilka Vega is the executive for economic and environmental justice at United Women in Faith, the largest denominational faith organisation for women in the United States.
For climate justice advocates around the globe, many of the United States’ environmental policies have felt dangerous. In this moment, Earth Day might feel sobering as we acknowledge the gravity of these dangers. However, we cannot allow bad actors at the national level to shake our spirit. Instead, we can harness the energy of Earth Day and mobilize our communities for change.
Of course, while local action is powerful, it is against a backdrop of rollbacks to environmental protections. In 2026, the current US administration has continued on its track of undermining climate action, taking us back decades on efforts to mitigate and adapt to the escalating climate crisis.
In January, the US withdrew from several international climate organizations and treaties, including the United Nations Framework Convention on Climate Change and the Paris Agreement. In February, the Environmental Protection Agency (EPA) repealed the Greenhouse Gas Endangerment Finding, which will make it more difficult to regulate greenhouse gas emissions and pollutants.
More destructive weather extremes
Climate change is not a future threat – it is affecting people right now. And it is not an abstract concept. We have seen its impact in tangible ways.
In 2025, the mainland United States experienced the fourth hottest year on record. In February of this year, the National Oceanic and Atmospheric Administration reported an average surface temperature 2.12° F higher than the 20th-century average.
Tornadoes, tropical cyclones, floods and other natural disasters devastated communities around the world, and have been growing more frequent and destructive due to climate change. Frontline communities disproportionately suffer these effects. Women and children are most likely to be displaced and are more likely to suffer gender-based violence when natural disasters and weather emergencies occur.
As climate change devastates communities, it is important that we take practical steps to prevent future harm. We can work with each other to encourage new practices, even without the support of powerful people. Our force can have an impact on communities beyond our imaginations. I have seen this in action, from my own neighborhood to organizations across the US and around the world.
Communities resisting the old and building the new
For example, last year in Texas, people from all walks of life came together to protest the toxicity of fossil fuels in front of oil and gas CEOs. In Oak Flat Arizona, an Apache stronghold is still resisting a destructive copper mine project despite setbacks that threaten to shatter their sacred lands.
One woman in La Mesa, California led efforts to engage nearby school districts in discussions about joining the EPA’s Clean School Bus program. In the wake of hurricanes, First Grace United Methodist Church in New Orleans used their solar panels to offer relief through charging and cooling for neighbors experiencing power outages.
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In Marange, Zimbabwe, Environmental Buddies Zimbabwe installed energy-efficient stoves in their community. A project with similar goals, Eco-Green Gold in Bolgatanga, Ghana trained 40 women to produce charcoal from grass as an eco-friendly alternative to wood-based charcoal. They both are creating opportunities for their neighbors while reducing deforestation and promoting renewable energy.
Shared responsibility for a cleaner, safer planet
These communities have shown that we all have a responsibility to fight for a cleaner, healthier and safer Earth. That responsibility does not end when the government is not doing enough; rather, it becomes imperative that we boost our efforts.
Although there is only so much we can do about the actions of a powerful government and wealthy corporations, we can influence what happens in our own communities – and that influence matters.
Individual actions build powerful movements; change must always begin at the local level. When we see people around the world organizing and taking direct action, we realize the true scale of what is possible. Every effort, no matter how small, becomes part of a larger movement that cannot be ignored.
We hold onto the unwavering belief that we can still turn the tide on climate change – and it is that hope that drives every step of our work toward a better, sustainable future.
The post Earth Day is an opportunity for communities to show the way on climate action appeared first on Climate Home News.
Earth Day is an opportunity for communities to show the way on climate action
Climate Change
Extreme heat is rewriting food security. The best fixes are already within reach
Kaveh Zahedi is the Assistant Director-General of the UN Food and Agriculture Organization (FAO) and Director of FAO’s Office of Climate Change, Biodiversity and Environment. Ko Barrett is the Deputy Secretary-General of the World Meteorological Organization (WMO).
Every crop, every animal and every fish has a thermal limit, the point where additional heat stops being normal weather and starts doing damage. In food systems, that threshold arrives sooner than many people realise.
For key agricultural species, the danger zone often sits between 25 and 35°C at the moments that matter most, such as flowering and reproduction. As climate change drives more days into the mid-40s°C in major breadbaskets, those limits are already being crossed. The result is lower yields, weaker livestock, stressed fisheries, higher fire risk and farmworkers – the backbone of the system – forced into unsafe conditions.
A new joint FAO-WMO report, released on April 22, shows that extreme heat is already cutting production and exposing agricultural workers to dangerous conditions. One analysis found that beef cattle mortality reached as high as 24% in some documented heatwaves. Marine heatwaves were linked to an estimated $6.6 billion loss in fisheries production. And the outlook worsens as temperatures rise. For every 1°C of warming, maize and wheat yields are projected to drop 4–10%.
Adapting to a hotter world will take long-term investment in science, technology and infrastructure if food supplies are to keep pace with demand. We will need more heat-tolerant varieties and breeds, new farming practices, and we will need to make hard choices about what can still be grown as conditions change. But we also need a plan for next season, not just 2100.
With more severe heat likely in the coming years and another El Niño poised to test unprepared systems, the priority is to move from crisis response to heat readiness. That starts with early warnings and practical measures to help farmers protect harvests, supply chains and their own safety.
Heat warnings farmers can use
Weather forecasts should give farmers time to act before extreme heat turns into loss. That is the strategy behind Early Warnings for All, the UN initiative coordinated by WMO with partners including FAO. But early warning only works when reliable observations, modelling and verification turn weather and climate data into forecasts farmers can actually use.
Cambodia’s Green Climate Fund-funded PEARL project, supported by FAO, upgraded and installed new weather stations to feed a phone-based app that sends forecasts with crop- and region-specific guidance. When forecasts exceed 38°C, alerts recommend maintaining soil moisture with mulch, shading vegetables, delaying sowing rice seeds, and shifting irrigation to cooler hours.


That advice is part of a practical set of heat measures that help farmers reduce losses before extreme heat turns into crisis. In some cases, that means shading crops with cloth or solar panels, increasing water storage, installing low-cost cooling misters, or adjusting planting windows. Cattle generate heat when they eat, so feeding them in cooler hours can help.
Poultry cannot sweat, so shade is essential. Where extreme heat is becoming the norm, farmers may need to move from cattle to more heat-tolerant goats and sheep, or even switch crops. Evidence from Pakistan shows these adjustments can pay off. A FAO-GCF project field-tested the combination of heat- and drought-tolerant cotton and wheat varieties with mulching and adjusted planting windows. Over six seasons, returns reached as high as $8 for every $1 invested.
Extreme heat doesn’t only damage food in the field. It also speeds up spoilage after harvest, turning heat stress into income loss and poorer diets. An estimated 526 million tonnes of food, about 12% of the global total, is lost or wasted because of insufficient refrigeration. In Jamaica, a GCF-funded, FAO-supported programme treats cold storage as climate adaptation, using solar-powered cold storage to help smallholders keep produce market-ready when heat hits.
Protecting workers
Cold chains and toolkits matter, but they don’t protect the people doing the work. Extreme heat is one of the biggest threats to farmers’ health, driving dehydration, kidney injury and chronic disease, and taxing public health systems in the process. More than a third of the global workforce, around 1.2 billion people, face workplace heat risk each year, with agriculture among the hardest-hit sectors.
We already know what basic protection looks like, and it is already being put into practice in Cambodia, where the extreme heat advisories are paired with advice for farmers to shift heavy work to cooler hours and ensure access to water, shade and rest breaks.
The World Health Organization (WHO) and WMO are calling for the same approach at a wider scale: adjusted work–rest schedules, access to shade and safe drinking water, training to recognize heat illness, and integrating weather and climate information into workplace risk management.
Why preparation pays
The tools to prepare for extreme heat already exist. The problem is that funding still falls far short of the scale of the risk, and rural communities are too often overlooked by the assumption that extreme heat is mainly an urban problem.
In 2023, agrifood systems received just 4% of total climate-related development finance. Without more investment, early warnings won’t reach the people who need them most, extension services will remain under-resourced, and basic protections for crops, livestock and workers will stay out of reach.
Preparing in advance is cheaper than absorbing the same losses year after year. It can stabilise production and prices now, while buying time for the bigger scientific and structural shifts agriculture will need in a hotter world.
We don’t need a new playbook. We need to use the one we already have. The FAO-WMO report lays out the risks of extreme heat. Now is the time to use that evidence to protect food systems and the people who sustain them.
The post Extreme heat is rewriting food security. The best fixes are already within reach appeared first on Climate Home News.
Extreme heat is rewriting food security. The best fixes are already within reach
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