Find out how to use labels as part of the Sustainability Disclosure Requirements (SDR) regime.
We introduced labels to help consumers navigate the sustainable investment market.
The labels are for funds with environmental or social goals. Firms can choose to use labels if their funds meet the criteria.
Some funds may not include a label but may still make sustainability claims.
Firms must disclose clear and simple information on all funds using labels or making sustainability claims.
We apply our usual supervisory and enforcement approaches to this regime.
Criteria: which funds can use a label
All products using labels must meet the general criteria below, as well as criteria specific to each label.
| Sustainability objective | |
|---|---|
| This must be aligned with the relevant label and be clear, specific and measurable. | |
| Investment Policy and Strategy | At least 70% of the product’s assets must be invested in accordance with this objective, using a robust, evidence-based standard that is an absolute measure of sustainability, depending on the label. |
| Key performance indicators (KPIs) | KPIs must measure progress towards meeting the sustainability objective. |
| Resources and governance | Firms must ensure appropriate resources and governance to support delivery of the sustainability objective. |
| Stewardship | Firms must identify a stewardship strategy to support delivery of the sustainability objective for the specific fund, and have an escalation plan. |
For a summary of the general and specific qualifying criteria, see Annex 2 of our Policy Statement PS23/16.
How to use a label
To notify us of your plans to use a label, complete a notification form on our online system, Connect.
If a fund transfers to another fund manager, which would constitute a revision of the label, the respective fund managers should also submit the relevant notifications via the Connect system.
The full process to use a label will be different depending on the type of fund in scope.
Check which process applies to your fund below.
In your communications, firms must not imply the FCA has approved, conferred or endorsed the use of a label (see ESG 4.1.5R(2)).
When making changes to an existing product, remember to consider your pre-event notification obligations.
What to do if your fund details change
If, at a later stage, the information in pre-contractual disclosures is no longer accurate, firms will need to amend the disclosures.
You’ll need to follow usual approval and notification processes depending on the type of change.
Downloadable labels
This section is for firms and distributors in scope of the SDR regime only.
Firms intending to use labels should download the relevant label from the form when notifying us of their intention to use a label.
Distributors can also download the labels below.
The FCA asserts its exclusive rights to the trademarked investment label logos under UK law, prohibiting any unauthorised use, reproduction, or modification without our prior written consent. By downloading the investment label, you agree to these trademark terms of use.
If you have any questions about using labels, please contact your usual supervisor or [email protected].
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