Two funds of asset manager T. Rowe Price have been approved to carry the Sustainability Impact label under the UK’s Sustainability Disclosure Requirements (SDR) regime.
The SDR, introduced by the UK’s financial regulator, the Financial Conduct Authority, mandates sustainability labels, disclosures, anti-greenwashing rules, and marketing guidelines for UK-domiciled funds. These requirements ensure companies and financial institutions provide transparent reporting on their environmental and social impacts.
One of the funds, the Global Impact Credit Fund, managed by Matt Lawton, is “one of the first fixed-income funds” to achieve this label. With a dual mandate, the fund targets “positive environmental and social impact alongside a financial return”
Lawton highlighted that the fixed income market channels capital to projects supporting environmental and social outcomes, with the growing ESG-labeled bond market offering opportunities to finance initiatives delivering measurable positive impact.
Hari Balkrishna manages the other fund, the Global Impact Equity Fund, which also operates with a dual mandate. The fund invests in listed companies offering “an environmental or social positive impact with strong earnings and cash flow growth”. Balkrishna noted the increasing shift in equity markets towards companies addressing sustainability challenges, creating opportunities to support scalable solutions.
Nataline Terry, head of distribution, UK and Ireland at T. Rowe Price, said: “The label provides significant benefits for our clients by ensuring transparency and accountability, allowing investors to make informed decisions aligned with their values and sustainability goals. We strongly believe the impact is achieved within an investment portfolio not only by investing in companies that can make a difference to the environment or society but also by engaging with companies in a number of impact related themes.”
T. Rowe Price plans to formally adopt the label for these funds in early 2025.
