The Financial Conduct Authority (FCA) is tackling the issue of greenwashing, by bringing in tough rules at the end of last month. These ban firms from making misleading statements about the environmental benefits of products. Global assets under ESG-orientated funds expect to increase to more than £27 trillion by 2026.
According to the FCA, while eight out of ten people want their money to do good as well as deliver a return, currently seven out of 10 investors think many investments that claim to be sustainable actually aren’t. The new rules mean financial products and services billed as sustainable should do as they say, have evidence to back it up and communication with clients must be “fair, clear and not misleading”. The new rules apply to all FCA-authorised firms.