London, 28 November 2023: Commenting on the Financial Conduct Authority’s publication of the Sustainability Disclosure Requirements (SDR) policy statement and Consultation Paper for guidance to the anti-greenwashing rule,
Clare Reilly, Chief Engagement Officer at PensionBee, said: “The introduction of sustainable labels, as well as an anti–greenwashing rule, are key steps towards giving people more confidence that financial products making sustainability claims are actually backing up those claims with action.
“The FCA has chosen to introduce four labels: Sustainability Impact, Sustainability Focus, Sustainability Improvers and Sustainability Mixed Goals. It has said that there is no hierarchy and that instead ‘consumers are likely to place the labels into their own hierarchy’. This means that people who want their financial decisions to back their values will be able to choose between a range of approaches towards sustainability, picking the label that best matches their own world view.
“While it might take a little while for people to get used to the labels, over time, they should result in consumers being able to differentiate financial products that are sustainable in the same way it’s possible to find fairtrade or organic food in the supermarket.
“As COP28 kicks off this week, there is renewed focus on the urgency of climate action and in particular, through the Make My Money Matter campaign, the undeniable role of pension providers, as asset owners, to act towards resolving it. This new regulatory regime will help drive this forward through enabling pension savers to make confident choices.”
PensionBee offers both Impact and Fossil Fuel-Free plans to customers.