Which? comments as FCA sustainability disclosure and labelling regime confirmed
Sam Richardson, Deputy Editor of Which? Money, said:
“Which? research found that the wording used on ‘sustainable’ investment funds can be difficult to understand, and that consumers may not have the time, expertise or resources to check the claims themselves, leaving them vulnerable to greenwashing. It’s encouraging to see the regulator introducing new labels which should make it easier for people to find and compare investments that align with their values.
"We have previously warned about the gap between sustainability claims and reality when it comes to current and savings accounts providers, so the introduction of an 'anti-greenwashing rule' for other financial products, such as savings accounts and mortgages, is another positive step.
“Consumers need to be confident that the financial products they're buying really do what they say on the tin, so it's vital that the Financial Conduct Authority's labels, controls on the use of terms like ESG and general 'anti-greenwashing' rules are properly enforced."
ENDS
Notes to editors: