Parallel to Europe’s recent moves, as of end-May, all FCA-authorised firms are required to ensure that any reference to sustainability (environmental and social) characteristics of a product or service are fair, clear and not misleading, and consistent with the “actual sustainability characteristics” of that product or service under Sustainability Disclosure Requirements (SDR).
Martina Macpherson, head of ESG product strategy and management in the Financial Information division at SIX, said in an emailed statement: “Today marks the first step in the UK’s answer to Europe’s SFDR [Sustainable Finance Disclosures Regulation], designed to tackle claims of greenwashing. What the regulation covers is expansive, and there is hope this will bring more clarity and consistency when it comes to sustainable investing.
“But it is important to note this is the first step of many. With more specific product labelling rules set to apply to from July, UK firms must brace themselves for these ongoing changes to better navigate the complexity jungle. It is clear data and regulatory content mapping is the key differentiator for service providers here – relying on trusted vendors that can provide quality, accurate data and content in pre-established delivery formats. This is the only way firms can back up their sustainability credentials, meaning they will be better placed to meet new regulatory requirements and prepare for those to come later this year.”