The ESG investment labelling landscape is currently in flux with no unified standards which may lead to confusion when it comes to drafting sustainable investing strategies. As best practice continues to evolve, here are some key principles you should consider:

🟣 Spectrum of Strategies: Clearly demonstrate and disclose strategies and objectives to ensures diverse sustainable investment products are appropriately categorised.

🟣 Revenue Thresholds: Labelling standards need to account for the relevance of screening thresholds. Claims should not mislead investors by overstating the significance of exclusions, focusing instead on whether the relationship is central or incidental.

🟣 Interoperability: To reduce costs and expand consumer choice, labelling standards should support recognition of international criteria, allowing global funds to easily meet local requirements and disclose eligibility under overseas regimes.

Greater consensus around ESG labelling would promote greater understanding for consumers and foster sustainable investment growth.