New measures will give you better information on investments, to help you find funds that meet your sustainability objectives.
On this page
If you’ve invested in funds that are described as sustainable, or are looking to invest, we’re introducing several measures to give you better information on what you’re investing in.
What this means for you
From 31 July 2024:
- you’ll start seeing labels on investment funds that have a specific environmental or social goal
- you’ll have access to clear and simple information on what that goal is and the approach to achieving it, and you’ll get annual updates on progress towards it
- if a fund doesn’t include a label but is making sustainability claims, you’ll have access to clear and simple information explaining how it’s invested and why it doesn’t have a label
There are 4 labels to help you recognise investment funds with different sustainability goals. Providers can choose to use any of these labels if their funds meet the criteria.
Sustainability Focus: invests mainly in assets that focus on sustainability for people or the planet.
Sustainability Improvers: invests mainly in assets that may not be sustainable now, with an aim to improve their sustainability.
Sustainability Impact: invests mainly in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet.
Sustainability Mixed Goals: invests mainly in a mix of assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet.
Funds that have labels will also need to give you clear and simple information, including:
- what the sustainability goal is
- the approach to achieving it
- annual updates on progress towards the goal
Investment funds that don’t have labels
Some funds may not include a label but may still make sustainability claims, such as including ‘green’ or ‘low carbon’ in the name of the fund. This could be because:
- the provider has chosen not to feature a label
- the fund doesn’t meet the criteria to feature a label
Where this is the case, you’ll still have access to clear and simple information about what the fund is investing in. You’ll also see a statement explaining why it doesn’t have a label.
Other funds may not include a label because the fund isn’t in scope of the regime. This includes funds that are based outside the UK or different types of funds such as pension funds.