Last updated: 29 Apr 2024 02:00 Posted in:
New guidance to help financial services companies comply with forthcoming anti-greenwashing rules has been published by the Financial Conduct Authority (FCA).
Coming into effect from 31 May 2024, the new rules are designed to protect consumers by ensuring sustainable products and services they are sold are accurately described.
The FCA is also consulting on extending the requirements on how sustainable investments are labelled and explained to portfolio managers. These are organisations 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 product labels to help consumers understand what their money is being used for; and 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 at the 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.”
"Our good and poor practice anti-greenwashing examples will help firms market their products in the right way."
Sacha Sadan, Director of Environmental, Social & Governance, FCA