Which? responds to FCA's new sustainable investment labels

Sam Richardson, Deputy Editor of Which? Money, said:

 

"Ethical, sustainable and ESG-branded funds have grown in popularity in recent years, yet regulation has not kept pace, so it's encouraging to see the regulator introducing new labels which should make it easier for consumers to find and compare investments that align with their values.

 

"Consumers need to be confident that the financial products they're buying really do what they say on the tin, but Which? research has found that investors may not have the time, expertise or resources to check themselves. That's why it's vital that the Financial Conduct Authority's labels, controls on the use of terms like ESG, and general 'anti-greenwashing' rules must be properly enforced."