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UK Sustainability Disclosure Requirements

An early analysis of the UK SDR

The UK Sustainability Disclosure Requirements (SDR), recently announced by the Financial Conduct Authority, aim to enhance transparency and trust in sustainable investment products, addressing concerns about greenwashing.


These UK SDR guidelines introduce four sustainability labels—'Sustainability Focus,' 'Sustainability Improvers,' 'Sustainability Impact,' and 'Sustainability Mixed Goals'— designed to provide investors with clear information about the sustainability attributes of financial products.


By the end of the implementation year, it's expected that around 300 funds, representing about 8% of UK-domiciled funds, will adopt these labels. This move is likely to be dominated by equity funds, while fixed-income and passive funds will see less representation. Overall, the introduction of these labels highlights a shift towards responsible investing, aligning financial strategies with sustainable and ethical values.


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.

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What's Inside:

  • An in-depth understanding of the four sustainability labels and their usage requirements. 

  • Insightful analysis of potential market scenarios and the underrepresentation of passive funds. 

  • Pros and cons of using labels and their impact on investment objectives. 

  

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