* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, July 7, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Magicians and Battlebots light up Las Vegas entertainment scene – KSNV

    Magicians and Battlebots Take Las Vegas Entertainment by Storm

    Max-Matching Entertainments & Longhua District form partnership for new entertainment complex – Blooloop

    Max-Matching Entertainments and Longhua District Unite to Launch Thrilling New Entertainment Complex

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    MAY HER SOUL REST IN PEACE 🙏 Veteran entertainment columnist and talent manager Lolit Solis has passed away. She was 78 years old. https://tinyurl.com/6kumarkx | LatestChika.com – Facebook

    Beloved Entertainment Icon Lolit Solis Passes Away at 78 – A Life Remembered with Love and Respect 🙏

    Neil Young Plays Rare Full-Band ‘Ambulance Blues’ With The Chrome Hearts – Yahoo

    Neil Young Stuns Fans with Rare Full-Band Performance of ‘Ambulance Blues’ Alongside The Chrome Hearts

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Column: Teach kupuna new technology skills – Honolulu Star-Advertiser

    Empowering Kupuna: Unlocking New Technology Skills for a Connected Future

    EIFO invests $5 million in D3, the Ukraine-focused defence technology venture fund – sUAS News

    EIFO Pledges $5 Million to Supercharge Ukraine-Focused Defense Technology Fund

    New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

    Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

    Environmental cognitive distance, R&D capability distance, and supply chain green technology innovation – Nature

    Bridging Gaps: How Environmental and R&D Differences Drive Green Technology Innovation in Supply Chains

    LG Innotek CEO Moon Hyuksoo: “Our Next-gen Substrate Technology Will Change the Industry Paradigm” – TechPowerUp

    LG Innotek CEO Moon Hyuksoo: “Our Next-Gen Substrate Technology Will Revolutionize the Industry” Revolutionizing the Future: LG Innotek’s CEO Unveils Game-Changing Next-Gen Substrate Technology

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Magicians and Battlebots light up Las Vegas entertainment scene – KSNV

    Magicians and Battlebots Take Las Vegas Entertainment by Storm

    Max-Matching Entertainments & Longhua District form partnership for new entertainment complex – Blooloop

    Max-Matching Entertainments and Longhua District Unite to Launch Thrilling New Entertainment Complex

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    MAY HER SOUL REST IN PEACE 🙏 Veteran entertainment columnist and talent manager Lolit Solis has passed away. She was 78 years old. https://tinyurl.com/6kumarkx | LatestChika.com – Facebook

    Beloved Entertainment Icon Lolit Solis Passes Away at 78 – A Life Remembered with Love and Respect 🙏

    Neil Young Plays Rare Full-Band ‘Ambulance Blues’ With The Chrome Hearts – Yahoo

    Neil Young Stuns Fans with Rare Full-Band Performance of ‘Ambulance Blues’ Alongside The Chrome Hearts

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Column: Teach kupuna new technology skills – Honolulu Star-Advertiser

    Empowering Kupuna: Unlocking New Technology Skills for a Connected Future

    EIFO invests $5 million in D3, the Ukraine-focused defence technology venture fund – sUAS News

    EIFO Pledges $5 Million to Supercharge Ukraine-Focused Defense Technology Fund

    New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

    Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

    Environmental cognitive distance, R&D capability distance, and supply chain green technology innovation – Nature

    Bridging Gaps: How Environmental and R&D Differences Drive Green Technology Innovation in Supply Chains

    LG Innotek CEO Moon Hyuksoo: “Our Next-gen Substrate Technology Will Change the Industry Paradigm” – TechPowerUp

    LG Innotek CEO Moon Hyuksoo: “Our Next-Gen Substrate Technology Will Revolutionize the Industry” Revolutionizing the Future: LG Innotek’s CEO Unveils Game-Changing Next-Gen Substrate Technology

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Science

New investment labels aim to help savers spot sustainable products—but won’t always stop greenwashing

December 10, 2023
in Science
New investment labels aim to help savers spot sustainable products—but won’t always stop greenwashing
Share on FacebookShare on Twitter

pounds

Credit: Pixabay/CC0 Public Domain

From the nutritional traffic light system displayed on a box of cereal, to the efficiency ratings we look at when buying a house, ratings and labels help us work out how to spend money responsibly. A new scheme from the UK’s financial regulator also aims to use them to help you invest responsibly.

The Financial Conduct Authority’s (FCA) first sustainable investment labeling regime is part of a larger sustainability overhaul kickstarted by the UK government in 2021. This also includes the creation (still to be finalized) of a green taxonomy for UK companies—a set of thresholds and targets to gauge whether products or activities meet sustainable objectives.

The UK is not the first country to do this. In Europe, there are already several labeling schemes for investors in France, Belgium, Austria, Luxembourg and the Nordic countries. The French label was launched in 2016 by its treasury and has so far gathered the largest amount of assets under management.

Governments can play an essential role in ensuring financial markets become more sustainable and that the world remains on a 1.5°C trajectory for limiting climate warming. Our research on French sustainable investment labels suggests this is an innovative way for governments to help investors address their sustainability concerns.

Labeling challenges

Before these schemes, governments largely used principles or rules-based disclosure regulations to steer business towards sustainability. Such regimes encourage or mandate companies to disclose how they deal with environmental, social and governance issues. State-coordinated labeling regimes are a much more hands-on form of regulation.

The UK’s new scheme will offer four sustainable labels to help consumers make choices about how to invest. Once firms are able to start using the labels in July 2024, investors can choose from: sustainability improvers, sustainability focus, sustainability impact and sustainability mixed goals. The categories were tested for two years using consumer research and stakeholder consultancy.

The FCA labeling regime is particularly interesting because its designers were able to learn from Europe’s Sustainable Finance Disclosure Regime (SFDR). This scheme experienced challenges since launch in March 2021. It was conceived as disclosure-only, but ended up being quite prescriptive on technical sustainability requirements. As a result, the investment industry has been using the SFDR as a de facto labeling scheme.

Some market players have also used the SFDR as a marketing opportunity. They rebranded investment products using the word “sustainability” without equipping their investment strategy with evidence-based sustainability objectives.

As a result, what was designed as a pioneering regulatory tool that aimed to bring transparency and comparability to the industry ended up being seen—by investment companies as well as consumers, trade associations and regulators—as amplifying the risks of greenwashing and creating confusion for consumers.

These teething problems led the European Commission to announced a new consultation on the SFDR, which will close in December 2023.

Can the UK do better than Europe?

The FCA’s sustainability labeling regime is explicitly aimed at fighting greenwashing. Funds will be required to use specific wording to gain authorization to sell products labeled sustainable. These funds will need to state their sustainability objectives and provide key performance indicators to show these objectives are on track.

For the sustainability focus category, in particular, the FCA wants objectives to be supported by an evidence-based set of indicators (most likely the UK green taxonomy, although it has not been finalized yet). However, because the FCA labeling scheme is deeply rooted in a principles-based approach, it will leave the definition of sustainability to the investment companies rather than providing one, as the European Commission has done.

In France, to qualify for one of these labels, funds must be audited by a third party. But the FCA has chosen to leave investment companies to decide whether to audit internally or through a third party. The FCA will provide authorization but will also monitor products to identify potential breaches.

Another striking difference with the UK labels is that the FCA does not take a position on fossil fuel exclusion. Until recently, France didn’t either, but earlier this year, its minister of economic affairs, Bruno Lemaire, announced its label would now exclude fossil fuels to avoid consumer confusion when trying to invest sustainably.

This could also be a sticking point for British consumers who want to match their values with the contents of their investment portfolios.

Research on sustainable investing

The FCA has used consumer research to gauge British interest in sustainable investing, as well as the label system. The research showed consumers wanted labels with a grading system—similar to nutritional labels for food. Those surveyed also thought one label would be easier to understand than several.

So, it’s interesting that the FCA has decided to opt for neither of these preferences. It has also said its four labels should not be seen as a hierarchy. Of course, the FCA will be keen to avoid the fate of the EU SFDR in this respect: some investment firms have spent the last two years trying to strategically upgrade and downgrade their funds in the so-called “light green” and “dark green” categories to avoid greenwashing accusations.

Of course, the FCA’s ultimate aim with its labeling regime is to protect consumers from greenwashing. But the European experience certainly shows this is a difficult task, even with disclosure regulations and labels designed to guide investors.

This article is republished from The Conversation under a Creative Commons license. Read the original article.The Conversation

Citation:
New investment labels aim to help savers spot sustainable products—but won’t always stop greenwashing (2023, December 10)
retrieved 10 December 2023
from https://phys.org/news/2023-12-investment-aim-savers-sustainable-productsbut.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Phys.org – https://phys.org/news/2023-12-investment-aim-savers-sustainable-productsbut.html

Tags: Investmentlabelsscience
Previous Post

Climate ‘tipping points’ can be positive too—our report sets out how to engineer a domino effect of rapid changes

Next Post

Researchers thought they’d find 200 species of plants and animals living in their house and yard. They were very wrong

Intl forum on ecology opens with over 1,000 domestic and foreign guests – China Daily

Intl forum on ecology opens with over 1,000 domestic and foreign guests – China Daily

July 7, 2025
How New DNA Science Could Help More Families of the Missing – The New York Times

How New DNA Science Could Help More Families of the Missing – The New York Times

July 7, 2025
Letter | Dismissing science comes at a cost – thegazette.com

The High Cost of Ignoring Science

July 7, 2025
Hyatt Pushes Lifestyle Brands Into Asia Pacific Region – Luxury Travel Advisor

Hyatt Pushes Lifestyle Brands Into Asia Pacific Region – Luxury Travel Advisor

July 7, 2025
Kylian Mbappé’s stunning bicycle kick propels Real Madrid to win over Borussia Dortmund, and Club World Cup semifinals – CNN

Kylian Mbappé’s Spectacular Bicycle Kick Secures Real Madrid’s Victory Over Borussia Dortmund and Spot in Club World Cup Semifinals

July 7, 2025
Inside Iran’s war economy – The Economist

Inside the Secret Power Struggles Fueling Iran’s War Economy

July 7, 2025

Santa Cruz Shakespeare Launches Exciting New Monday Night Series

July 7, 2025
When it comes to vaccines, how are pediatricians restoring trust? – NPR

How Pediatricians Are Rebuilding Trust in Vaccines for Children

July 7, 2025
The battle to sway voters over Trump’s ‘big, beautiful bill’ begins – CNN

The battle to sway voters over Trump’s ‘big, beautiful bill’ begins – CNN

July 7, 2025
Column: Teach kupuna new technology skills – Honolulu Star-Advertiser

Empowering Kupuna: Unlocking New Technology Skills for a Connected Future

July 6, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (708)
  • Economy (733)
  • Entertainment (21,621)
  • General (15,750)
  • Health (9,771)
  • Lifestyle (738)
  • News (22,149)
  • People (734)
  • Politics (742)
  • Science (15,950)
  • Sports (21,232)
  • Technology (15,717)
  • World (714)

Recent News

Intl forum on ecology opens with over 1,000 domestic and foreign guests – China Daily

Intl forum on ecology opens with over 1,000 domestic and foreign guests – China Daily

July 7, 2025
How New DNA Science Could Help More Families of the Missing – The New York Times

How New DNA Science Could Help More Families of the Missing – The New York Times

July 7, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version