Following the UK Financial Conduct Authority (FCA) “Sustainability Disclosure Requirements (SDR) and investment labels” policy statement, we have added clear labels on our platform to UK investment funds that have specific environmental or social goals. These labels are designed to help you make informed decisions about which investment products meet your sustainability objectives.
UK-domiciled funds issuers can choose to use any of these labels if their funds meet the criteria, however, the use of the label is not mandatory.
What does the labels mean?
There are four labels that you can find on the platform that can help you navigate between investment funds with different sustainability goals:
- Sustainability Focus: These funds invest mainly in assets that focus on sustainability for people or the planet. Examples may include activities to support the production of energy, for example, from solar, wind or hydrogen.
- Sustainability Improvers: These funds invest mainly in assets that may not be sustainable now but aim to improve their sustainability. Examples may include investments in companies that are on a credible path to net zero by 2050, or are committed to improving social standards such as human rights.
- Sustainability Impact: These funds invest mainly in solutions to sustainability challenges, aiming to create a positive impact for both people and the planet. Examples may include renewable energy generation and social housing.
- Sustainability Mixed Goals: These funds invest mainly in a mix of assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet. Examples may include a mixture of investments from the labels above (Focus, Improvers and Impact).
Funds that have labels will also need to provide you with clear and simple information, including:
- What the sustainability goal of the fund is;
- The approach the fund takes to achieve it;
- Annual updates on progress towards the goal.
Where can I find this information?
You can find this information in the document tab:
UK Investment funds for which no UK SDR label is shown on the platform may still make sustainability claims, such as including ‘green’ or ‘low carbon’ in the name of the fund. The lack of the SDR label may be due to:
- The fund issuer’s decision not to have a label;
- The fund not meeting the criteria to have a label.
Non-UK Investment funds are not within the scope of the regulation and, as such, the lack of a label does not mean that the fund does not have a specific environmental or social goal.
Further information on the Sustainability Disclosure Requirements can be found on the FCA's website (https://www.fca.org.uk/consumers/sustainable-investment-labels-greenwashing)