Just 1% of financial advisers and wealth managers “completely trust” the sustainability claims made by funds, according to a new report.

The FCA is planning to clamp down on so-called ‘greenwashing’ - false claims that funds and financial products abide by strict ESG credentials.

A lack of clear standards and definitions and the risk of greenwashing have been cited as two of the main barriers to financial advisers recommending ESG investments more often to clients.

The UK fund sector has made major strides in improving its ESG credentials but major improvements are still needed, according to a new report from pension consultants XPS.