EdenTree Investment Management is set to become the “only UK fund house with a fully SDR-labelled product range”, following its decision to adopt Sustainability Disclosure Requirements (SDR) labels for seven funds.
The move will bring the total number of labelled EdenTree funds to eleven, adding to the four that have already received SDR designations.
The firm is now notifying clients, and the funds will adopt the new labels in February. Once applied, EdenTree will have a fully labelled range. The “Sustainability Focus” label would apply to its European Equity, Global Equity, Managed Income, Short Dated Bond, Sterling Bond, UK Equity and UK Equity Opportunities funds.
The expanded set of labels would make EdenTree the first UK asset manager to have its entire fund range classified under the Financial Conduct Authority (FCA)’s sustainability labelling framework.
The FCA’s SDR includes UK rules that set clear standards for how investment products can label and report their sustainability claims. EdenTree applied Sustainability Impact labels to its Green Future, Green Infrastructure and Global Impact Bond funds in summer 2024, and a Sustainability Focus label to its Global Sustainable Government Bond Fund earlier this year.
UK funds in race to comply with SDR deadline
Carlota Esguevillas, head of sustainable investment, EdenTree, commented: “Achieving full SDR labelling across our fund range marks a significant milestone for EdenTree and for sustainable investment in the UK.
Investing sustainably shouldn’t be complicated. As an industry, we owe it to investors to provide a transparent and varied range of sustainable investment options, allowing them to confidently select the strategy that best aligns with their own priorities and goals. As the first UK investment house with all funds SDR-labelled, we are proud to offer clients a fully labelled suite spanning equities, fixed income and listed infrastructure, across a choice of both Impact and Focus labelled funds.
While the SDR process has involved a steep learning curve for the whole industry, we believe the new rules have brought much-needed clarity to the market, setting a higher bar for sustainability and setting down a strong foundation of quality and trust which we believe is essential to the future growth of the sustainable fund industry.”
