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ESG

The FCA’s new ESG rules won’t stop greenwashing, experts warn

SDR allows firms to 'mark their own homework' and ESG labels are 'nonsense' according to critics

'I think there could be a missed opportunity there'
'I think there could be a missed opportunity there' Photo: Getty Images

The Financial Conduct Authority’s new ESG labelling regime does not set a high enough standard and is unlikely to quash greenwashing, according to sector experts.

The watchdog’s hotly anticipated Sustainability Disclosure Requirements dropped on 28 November. The final package, landing over a year after an initial consultation, includes an anti-greenwashing rule, naming and marketing requirements, and four green labels for funds that meet certain sustainability criteria.

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