UKSIF Response to FCA Consultation on Anti-Greenwashing Rule

UK Sustainable Investment and Finance Association (UKSIF) has issued a response to GC23-3: Guidance on the anti-greenwashing rule.

UKSIF had an extensive involvement in the development of the FCA’s sustainability disclosure requirements regime (SDR), the final form of which was released by the FCA on 28 November 2023. The clarification and expansion of the sustainability disclosure regime is integral to the UK’s aim of becoming a world leader for green and sustainable investing, and SDR is a key milestone for this.

UKSIF is the leading membership body for sustainable finance in the UK, representing over 300 members managing £19tn in global assets under management.

In a press statement, UKSIF Chief Executive, James Alexander, said:

“Greenwashing poses a serious threat to the long-term goal of real sustainability. We are pleased to see the FCA recognising the threat of greenwashing as comparable with other forms of marketing disinformation. We welcome the FCA’s comprehensive approach to providing guidance on what constitutes greenwashing, so continue to support the FCA to make sure this rule is both effective and implemented fairly, in order that firms can get behind it and seek to play by the rules enthusiastically.

It’s vital that investors consider the full range of environmental and social risks to investments. We are fully supportive of the FCA’s efforts to impose a fair set of standards to root out exaggerated and misleading claims, which both fail to meet consumers’ preferences, and fully consider the risks to investments.”