IA says the consultation seeks the views of asset managers on key aspects around sustainability and responsible investment, with the aim of bringing “greater clarity to help savers and investors navigate and better access this growing feature of the investment management industry.”
The consultation covers three key areas:
• Agreed standard definitions: Proposed definitions for the different sustainable investment approaches, including commonly used terms such as: environmental, social and governance (ESG) integration, impact investing and negative screening, with the aim of agreeing an industry-endorsed set of standard definitions.
• Development of a UK product label: A proposed voluntary UK product label designed to assist retail investors and their advisers to easily identify funds which have adopted a sustainable investment approach. The label would also draw attention to the sustainability and responsible investment expertise within the UK.
• ‘Stock-take’ of reporting frameworks: A review on reporting frameworks used by asset managers to disclose how they embed ESG considerations into their investment process, and the impact that their investments have had on wider sustainability indicators.
The consultation will close on 1st March.
IA chief executive, Chris Cummings, said: “Social and environmental change is happening faster than ever before.
“The asset management industry is at a critical juncture in embracing sustainability as a defining feature of the investment landscape.
“With sustainability and responsible investment becoming an increasing priority for today’s investors, this consultation is an important step forward in gathering the views of the industry with the ultimate aim of bringing greater clarity to savers.
“As significant investors, it is our role to help today’s investors achieve both their financial as well as their environmental and social goals.”