1st December 2023

2023: Sustainability disclosure and labelling regime confirmed by the FCA

The Financial Conduct Authority(FCA) has confirmed a substantial package of measures to improve the trust and transparency of sustainable investment products and minimise greenwashing related claims are fair, clear and not misleading:
-product labels to help investors understand what their money is being used for, based on clear sustainability goals and criteria
-naming and marketing requirements so products cannot be described as having a positive impact on sustainability when they don’t
Sacha Sadan, Director of Environmental, Social and Governance, FCA, said:

"We’re putting in place a simple, easy to understand regime so investors can judge whether funds meet their investment needs–this is a crucial step for consumer protection as sustainable investment grows in popularity. By improving trust in the sustainable investment market, the UK will be able to maintain its position at the forefront of sustainable finance, and capture the benefits of being a leading international centre of investment."

The package of measures has consumers at its heart and was tested with over 15,000 people. It also follows the FCA's Financial Lives survey, which highlighted that a significant majority of adults in the UK would like to invest in a way that protects the environment and has a positive social impact.

FCA Trends(543 articles)