| Link(s): | FCA confirms anti-greenwashing guidance and proposes extending sustainability framework | FCA FG24/3: Finalised non‑handbook guidance on the Anti‑Greenwashing Rule (fca.org.uk) |
Context
The FCA has published finalised non handbook guidance on the Anti-Greenwashing rule, which is due to come into force for all firms on 31 May 2024. The new rule is designed to protect consumers by ensuring sustainable products and services they are sold are accurately described.
Key points to note and next actions
The FCA highlights the 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 proposed labelling and Sustainability Disclosure Requirements (SDR) 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”.