FCA pushes back against ESG labelling scheme criticism

Morningstar global director of sustainability research Hortense Bioy argued that there could be "some room for greenwashing" in the labelling system over its rules on being categorised as an ‘improvers' fund, as it does not specify how much of the portfolio must be engaged with. However FCA director of ESG Sacha Sadan pushed back against this assertion, arguing the FCA had "many powers" to stop greenwashing, and it would soon be regulating ESG ratings through a voluntary code of conduct. "We will be able to see whether we think they are doing the right thing in the authorisation proce...