The Financial Conduct Authority (FCA) has introduced sustainability labels to funds to help you make better informed choices about what you're investing in.
There are 4 labels to help you recognise investment funds with different sustainability goals:
- Sustainability Focus - funds that invest mainly in assets that focus on sustainability for people or the planet
- Sustainability Improvers - funds that invest mainly in assets that may not be sustainable now, but aim to improve their sustainability
- Sustainability Impact - funds that invest mainly in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet
- Sustainability Mixed Goals - funds that invest mainly in a mix of assets that either focus on sustainability, improving their sustainability over time, or aim to achieve a positive impact for people or the planet
When you reSearch the site funds through our Global Investment Centre, you may start to see funds with these labels. These funds will also have a 'UK Sustainable Investment Labelling Disclosure Document', which will explain the sustainable characteristics of the fund.
Refer to How to use our Global Investment Centre for more information.
Funds that use sustainability-related terms
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 decided not to have a label
- The fund doesn’t meet the criteria to have a label
Other funds may not include a label because the fund isn’t in scope of the UK sustainable labelling regime. This includes funds based outside the UK or different types such as pension funds.