SDR: Measurement crucial to labelling scheme success

'This is about creating trust and making honest sustainability claims'

clock • 4 min read

The FCA's SDR labelling is a clear step forward in tackling greenwashing and encouraging sustainable investment, writes Tara Norton

The Financial Conduct Authority (FCA) Sustainability Disclosure Requirements (SDR)  labelling regime hit a key milestone at the end of July, with financial services firms now able to use one of four labels to describe their sustainable products. Sustainability labels must be robust to avoid being accused of ‘misinforming' consumers. Requiring substantiated evidence and third-party validation of the labelling programme will be crucial to its success. Here I explore what both the regulator and investors should be looking for behind the label. Third-party validation is a welcome chan...

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