Ahead of the anti-greenwashing rule coming into force on 31 May,
the Financial Conduct Authority (FCA) is supporting industry with
guidance to help them meet the standard. The new rule is designed
to protect consumers by ensuring sustainable products and
services they are sold are accurately described.
Results from the latest Financial Lives survey shows
significant consumer interest in sustainable finance as 81% of
adults surveyed would like their investments to do some good as
well as provide a financial return. This work supports the
long-term growth and competitiveness of the sector by helping
businesses meet this demand and ensuring consumers who invest in
sustainability-related financial products can make informed
decisions.
The FCA is also consulting on extending to portfolio managers the
requirements on how sustainable investments are labelled and
explained, making consumer choice easier. These are firms that
manage a group of investments for consumers, which can either be
offered as standardised products or tailored
services.
The proposed labelling and Sustainability Disclosure Requirements
(SDR) for portfolio managers largely mirror those introduced for
asset managers in November 2023. They include:
- product labels to help consumers understand what their money
is being used for.
- naming and marketing requirements so products can only be
described as having positive outcomes on the environment and/or
society when those claims can be backed up.
Sacha Sadan, Director of Environmental, Social and
Governance, FCA, said:
“Confirming the new anti-greenwashing guidance and our proposals
to extend the Sustainability Disclosure Requirements and
investment labels regime are important milestones that maintain
the UK's place at the forefront of sustainable investment. Our
good and poor practice anti-greenwashing examples will help firms
market their products in the right way. We continue to work
closely with the ASA and CMA to address greenwashing.
“Consumers care about investing in products that have a positive
impact on the planet and people. That's why we want to boost the
integrity of the market and ensure people can make informed
decisions about how to invest their money.”
Notes to editors
