Today the Association of Investment Companies (AIC) responded to the FCA paper, ‘Sustainability Disclosure Requirements (SDR) and investment labels’ Consultation Paper CP22/20.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “We applaud the FCA’s decision to include investment companies in the proposed sustainable investment labels. Investment companies’ inclusion creates a level playing field for all funds which is vital for consumers who need to be confident that they are comparing like with like when choosing a sustainable fund.
“It’s reassuring that the FCA is proposing robust rules to address greenwashing which is increasingly undermining consumers’ confidence in ESG claims. Recent AIC research showed that 58% of investors surveyed are not convinced by ESG claims from funds, up from 48% last year. Investors who do not consider ESG criteria are particularly cynical, with 55% saying they are not convinced by ESG claims from asset managers which doubled from 27% last year.
“We support the proposed simplification of the investment labels down to three main categories which will ensure the regime will work effectively for consumers. It’s encouraging that the ‘sustainable focus’ label sets a high threshold, namely 70% investment into environmental and social sustainability projects.
“The ‘sustainable impact’ label is especially welcome as investment companies are particularly suitable for these investments. They provide permanent capital and are able to invest in hard-to-sell assets like renewable energy infrastructure and accommodation for vulnerable people.”
You can read more about the AIC’s ESG research here.
