Labelling regime tackles misleading and confusing ESG claims

The Financial Conduct Authority has confirmed an anti-greenwashing rule, standardised labels, along with a ban on non-labelled products being called 'sustainable' - in what it calls "a crucial cornerstone of our ESG strategy".

Its research has found that 81 per cent of UK adults would like their investments to do good as well as provide financial return - but investors are confused by inconsistent use of terms like 'green', 'ESG', 'sustainable' or 'responsible' and aren't confident that claims about sustainability are genuine.