UK-based EdenTree Investment Management has confirmed two of its funds will carry the Sustainability Impact label, in line with the UK Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR). The label will be applied to the EdenTree Green Future Fund and the EdenTree Green Infrastructure Fund, making EdenTree the first firm with more than one SDR labelled fund. Although voluntary, any UK-domiciled fund with an SDR-aligned name must comply with the terms and conditions of one of four SDR labels – ‘focus’, ‘improvers’, ‘impact’ and ‘mixed goals’. The Sustainability Impact label indicates to investors that a fund invests with an aim to achieve a predefined, positive and measurable environmental and/or social impact. Firms have been able to apply to use the labels since the end of July, with the requirements due to come fully into effect on 2 December. However, due to the FCA finding the label application process was taking longer than expected the authority has offered asset managers temporary flexibility to comply with the naming and marketing rules under SDR until 2 April next year. Last week, the FCA issued examples of good practice to help asset managers prepare disclosures for funds using these labels. “Responsible and sustainable investing is all we do at EdenTree, and we believe the new regime represents a positive step forward for the industry – one that will build trust in the sustainable investment market and help combat greenwashing,” said Charlie Thomas, CIO at EdenTree. “As a firm with a broad range of differentiated responsible and sustainable solutions, we recognise the important role we have to play in improving transparency and investor understanding in this important area of the market.” Fellow investment manager Ninety One’s Global Environment Fund has also adopted the sustainability impact label.
