Global asset manager Columbia Threadneedle Investments has announced it has adopted the UK Financial Conduct Authority (FCA)’s newly introduced Sustainability Focus label for nine of its global equities, UK equities, and multi-asset funds. This approach follows the FCA’s Sustainable Disclosure Requirements (SDR) aimed at increasing transparency and guarding against greenwashing risks.
The FCA unveiled the SDR framework in November 2023 as a guide for investors in evaluating the sustainability attributes of financial products. The rules governing naming and marketing are strict; the products can use only if they meet one of four specified labels. These labels include Sustainability Focus, those funds that are investing in environment and society sustainable assets; Sustainability Improvers, aiming at sustainability potential assets; Sustainability Impact, for fund that promises to deliver measured environmental or social impact; and finally, Sustainability Mixed Goals, that funds pursue multiple objectives.
To qualify for a label, at least 70% of a fund’s assets must align with the label’s criteria, and firms must provide ongoing product-level disclosures. The FCA originally scheduled the new rules to go into effect in December 2024 but has delayed enforcement to April 2025, allowing firms more time to prepare.
Four equity funds are covered by Columbia Threadneedle’s adoption of the Sustainability Focus label: CT Sustainable Opportunities Global Equity Fund, CT Sustainable Global Equity Income Fund, CT Responsible Global Equity Fund, and CT UK Sustainable Equity Fund. The label will also cover the Sustainable Universal MAP range, which comprises five actively managed multi-asset funds: Defensive, Cautious, Balanced, Growth, and Adventurous.
The asset manager also plans to extend the SDR sustainability labeling to two of its fixed income funds in the future.