FCA launches the UK’s first regulated impact investing label

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This post was authored by the Impact Investing Institute.

This week marked a groundbreaking milestone for the sustainability and impact investing market. 

The FCA has published their brand-new Sustainability Disclosure Requirements, which include the UK’s first regulated impact investing label.

Industry-defining moment

This is an industry-defining moment, and we congratulate the FCA on pioneering work at a crucial point in the development of the sustainable and impact investing market. 

We had the privilege of contributing directly to this work as members of the FCA’s Disclosures and Labels Advisory Group (DLAG) and are delighted to see our recommendations reflected in the policy statement detailing the plans for the new regulation published this week. 

Raising the bar for sustainable investing

We advocated for a regime that codified existing best practice, raised the bar for sustainable investing across the financial sector, and left space for continued innovation. 

We are pleased to see a recognition that impact can take place in both private and public markets and the requirement for impact products to have a theory of change. This is crucial if we want both to scale and protect the integrity of investments that benefit people and the planet. 

We are looking forward to working with the FCA and wider stakeholders on how these new rules will work in practice and will continue to advocate for a policy and regulatory environment that enables and prioritises investing with the intention to create positive outcomes for people and the planet.