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 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.