UK Sustainability Regime: FCA proposals for Sustainability Disclosure Requirements and investment labels
25 October 2022
FCA published a consultation paper (CP22/20) on Sustainability Disclosure Requirements (SDR) and investment labels
FCA sets out proposals relating to sustainable investment product labels (three labels are proposed – sustainable focus, sustainable improvers and sustainable impact), naming and marketing rules (including a general 'anti-greenwashing' rule) and a Sustainable Disclosure Requirements regime (SDR): consumer facing product-level disclosures, pre-contractual disclosures, ongoing sustainability-related performance information, entity-level disclosures and detailed disclosure requirements for distributors of products.
The FCA intends the final rules to be effective 30 June 2023 – an 'anti-greenwashing' rule applicable to all firms will apply then, with the sustainable investment labels regime and the various elements of SDR to apply on a phased basis from 30 June 2024. See our briefing for further details.
In scope: All regulated firms (as regards 'anti-greenwashing' rule), otherwise UK asset managers; "portfolio managers" (extends to capture private equity and other private market advisory activities).
Theme: Sustainable finance and ESG reporting