FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

Fund labelling article written for ESG Clarity

December 2nd, 2021

A big thank you to ESG Clarity for inviting me to write a piece on the important topic of sustainable investment fund labelling.

The first few paragraphs are copied below.

Labels won’t save the planet but they help investors.

‘Words, research and analysis will not save a single tree – only action will’

Let’s start by being brutally honest, if untrendy. The planet does not care what we call companies that emit carbon, destroy rainforests or fuel inequalities, or how we classify them in funds. Names do not change the weather, wipe out species, start or end wars or famines.

The problem however is that investors do care what things are called. And investors matter.

Major investors need to be able to properly understand and analyse what companies do and how they operate. And as the importance of such things has grown investor language has needed to become more sophisticated and nuanced. By contrast however individual investors – who mostly do not spend their lives thinking about investments – are baffled by lots of different new terms, which they often see as jargon.

I’ve been involved in this area – variously known as sustainable, responsible, ESG, impact or ethical investment – for nearly 30 years now and have a somewhat conflicted view on names and labelling conventions. I know words are both deeply irrelevant and hugely important. I also know – as David Attenborough’s most recent book beautifully describes – baselines shift, meaning what is widely accepted today will soon be seen as either too weak or too strong. Most probably the latter.

Read more…

 

The recently published FCA ‘Sustainability Disclosure Requirements and Investment Labels’ paper this refers to (DP21/4) is available here.

 

(These views are of course my own – and not to be viewed as representative of the DLAG (Disclosure and Labels Advisory Group) that I am delighted to be a member of. Julia Dreblow )

Links:

https://esgclarity.com/labels-wont-save-the-planet-but-they-help-investors/

https://www.fca.org.uk/publications/discussion-papers/dp21-4-sustainability-disclosure-requirements-investment-labels

 

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

London Climate Week – (free) Excel event tickets – 28 & 29 June
June 15, 2022

  London Climate Week event on 28 & 29 June  I happily agreed to become involved with a major London Climate Week event run by Reset Connect some time ago. The event is now only two weeks away. I did so mostly because I am always keen to help and encourage intermediaries to learn about climate issues […]

A collection of responses to HSBC’s Kirk extraordinary climate speech
May 27, 2022

Earlier this week I set out my initial response to HSBC’s head of Responsible Investment – Stuart Kirk’s – extraordinary presentation on climate risk  (see blog linked below). In the interest of understanding different points of view – here is a collection of  articles and opinions about his speech that we believe are relevant to […]

‘Man who jumps on bandwagon accuses fellow passengers of being on bandwagon’
May 23, 2022
HSBC

…and has now been rightly suspended by HSBC. There is so much to say on this story, but let me start by saying I have no desire to ‘bash’ HSBC. Big banks are imperfect and have, in my view, propped up the fossil fuel industry for far too long – but that is not what […]