SDR labels slow to gain traction but helping to reduce greenwashing

Advisers face confusion over how to apply new sustainability labels

Sahar Nazir
clock • 3 min read

Adoption of the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) labels remains cautious across the investment industry, despite evidence that the regime is already curbing greenwashing, according to experts at the Investment Association’s (IA) Sustainability and Investment conference 2025.

Speaking at the event yesterday (30 April), IA market insight manager Sarah Shehabi said that while more than 100 funds now carry an SDR label, uptake has been lower than expected. "We were expecting 216 last year," she revealed, adding that most firms who said they plan to adopt the labels have no concrete plans to do so within the next 12 months. The SDR regime, introduced by the FCA earlier this year, aims to bring clarity and accountability to sustainable investing by providing clearly defined fund labels that firms can adopt voluntarily. These include 'Sustainable Focus', 'Sustai...

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