Columbia Threadneedle Investments, a global asset management firm, has announced the adoption of the Financial Conduct Authority’s (FCA) newly introduced “Sustainability Focus” label for nine of its funds.
According to ESG Today, this initiative aligns with the FCA’s Sustainability Disclosure Requirements (SDR), designed to help investors identify genuinely sustainable investment products and combat the risk of greenwashing in portfolio management.
The SDR, established by the FCA in November 2023 and set to be enforced from April 2025, introduces stringent naming and marketing rules. Investment products can only use sustainability-related terms in their names or marketing if they adhere to one of four distinct labels: “Sustainability Focus,” “Sustainability Improvers,” “Sustainability Impact,” and “Sustainability Mixed Goals.” These labels aim to guide consumers in distinguishing the sustainability objectives and strategies of different investment products, with a requirement that at least 70% of a product’s assets be invested according to the label’s specific goals.
The nine Columbia Threadneedle funds adopting the “Sustainability Focus” label span various categories, including global equities and UK equities, along with a suite of sustainability-oriented active multi-asset funds known as Sustainable Universal MAP. These encompass a range from Defensive to Adventurous funds.
Mike O’Toole, Co-Head of UK Wholesale Distribution at Columbia Threadneedle, commented on the development: “We are excited to announce nine funds will adopt the new SDR ‘Sustainability Focus’ label. We believe the label provides the necessary transparency and clarity to investors looking to allocate their money to sustainable outcomes. Funds from across our core client offering will adopt the ‘Sustainability Focus’ label, including global and UK equities as well as our full range of sustainable, actively managed low-cost multi-asset solutions.”
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