UK Sustainability Disclosure Requirements - Labelled and Non-Labelled Fund Landscape

How the Sustainability Disclosure Requirements have reshaped the UK ESG fund market.

In November 2023, the UK's Financial Conduct Authority unveiled its Sustainability Disclosure Requirements (SDR) to improve the trust in, and transparency of, sustainable investment products and minimize greenwashing.

Among other measures, the SDR includes consumer-focused sustainability labels. UK-domiciled funds that have a specific environmental or social goal can opt for one of four labels: "Sustainability Focus," "Sustainability Improvers," "Sustainability Impact," and "Sustainability Mixed Goals," but they don’t have to. Regardless, all UK funds making sustainability claims must provide a consumer-facing disclosure.

Download this report now for more details on what the sustainability-labeled funds market may look like and how it could impact your investment approaches.