The UK financial regulator – the Financial Conduct Authority (FCA) – has introduced a product labelling scheme aimed at preventing “greenwashing” – passing off funds as having ESG benefits that they don’t actually have.
Impax Environmental Markets, which is the UK’s largest investment trust focused on environmental solutions and resource efficiency, has announced that it will be adopting the ‘Sustainability Impact’ label with effect from 27th November 2024, under the FCA’s new Sustainability Disclosure Requirements (SDR). A ‘Sustainability Impact’ label identifies investment products that aim to achieve a pre-defined positive measurable impact in relation to an environmental and/or social outcome.
The board and the manager (Impax Asset Management) agree that the trust’s investment strategy meets the qualifying criteria of the Sustainability Impact label. The company remains focused on seeking sustainable, above market investment returns from companies providing innovative solutions to environmental challenges or improving resource efficiency. It seeks to capture and measure, and achieve, the positive environmental impact provided by its portfolio companies, rather than limiting investment opportunities to those companies delivering on specific environmental targets.
There will be no change to the investment process and the board continues to believe that the investment process will deliver superior risk-adjusted returns over the long term, and the label illustrates the nature of the investment.
Glen Suarez, chairman, said: “We are delighted to adopt the ‘Sustainability Impact’ label. In an evolving area of regulation, we have worked hard with our investment manager to review the process and requirements. We believe investors seeking exposure to the long-term structural themes of environmental solutions with a rigorous investment process will find the label attractive and observe the confidence that the board has in those themes.”
IEM : Impax Environmental Markets adopts ‘Sustainability Impact’ label
