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 labelling regime is part of a larger sustainability overhaul kickstarted by the UK government in 2021. This also includes the creation (still to be finalised) of a green taxonomy for UK companies – a set of thresholds and targets to gauge whether products or activities meet sustainable objectives.
