FCA sets new sustainability labels for green investment funds - what do they mean?

The first part of the FCA's anti-greenwashing measures will launch at the end of May, while new investment labels will take effect in July. We explain how the rules work.

Businesswoman on mobile app in garden
(Image credit: Getty Images)

The Financial Conduct Authority (FCA) has announced strict rules on the use of sustainability terms and new labels to identify green investments in an effort to combat “greenwashing”.

The rules apply to all FCA-authorised firms, including current and savings account providers, insurers, financial advisers, pension funds and investment firms.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.