Global investment manager Schroders has unveiled plans to adopt the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) labels for 10 of its funds.
The FCA’s Sustainability Disclosure Requirements (SDR), introduced in November 2023, aim to help investors assess the sustainability of investment products and prevent greenwashing. The rules mandate that sustainability-related terms in product names or marketing must be tied to one of four labels: Sustainability Focus (investing in sustainable assets), Sustainability Improvers (targeting assets with potential for sustainability improvement), Sustainability Impact (achieving measurable positive impacts), and Sustainability Mixed Goals (investing across multiple sustainability objectives).
Among the funds set to adopt SDR labels is the Schroder Sustainable Bond Fund, marking it as one of the first bond funds to align with the new framework. This follows Schroders’ earlier announcement in November that its Schroder Global Sustainable Value Equity Fund would adopt the SDR ‘Sustainability Focus’ label, reflecting its broad sustainability standards.
The SDR labels Schroders plans to adopt include the ‘Sustainability Focus’ designation for several equity and bond funds, such as the Schroder Global Sustainable Value Equity Fund, Schroder Global Sustainable Growth Fund, Schroder Global Energy Transition Fund, Schroder Sustainable UK Equity Fund, Schroder Global Sustainable Food and Water Fund, Schroder Multi-Factor Equity Fund, Schroder Sustainable Bond Fund and Greencoat UK Wind plc. The ‘Sustainability Impact’ label will also be applied to funds like the Schroders Capital Real Estate Impact Fund and the Schroder BSC Social Impact Trust plc.
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Anna O’Donoghue, global head of product development and governance at Schroders, said: “We are proud to announce our intention to become an early adopter of the FCA’s SDR labels across 10 of our funds, which we believe reflects the integrity and robustness of our sustainable and impact investment approach. The labels will help to differentiate our sustainable product range, making it easier for clients who are seeking sustainable outcomes to identify opportunities to invest.”
O’Donoghue also emphasised Schroders’ collaboration with the FCA throughout the regulatory process and hinted at further announcements to come: “We are appreciative of the FCA’s ongoing collaboration and we continue to liaise closely with them as we work through the regulatory process across other relevant Schroders funds.”
Schroders plans to share additional details on the adoption of SDR labels in the coming months.
