FCA's Sacha Sadan reacts to criticisms of labelling scheme

Hortense Bioy, global director of sustainability research at Morningstar, argued that there "may 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. "Is that 20% of the portfolio, 30% of the portfolio, the full portfolio? That remains to be seen," she said. Sadan pushed back against this, stating that 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 se...