UK Sustainability Disclosure Requirements (SDR)

UK Sustainability Disclosure Requirements (SDR)

The UK’s Financial Conduct Authority (FCA) has introduced a set of measures designed to help consumers identify sustainable investments and protect them from greenwashing. These measures include four optional investment labels, new disclosure requirements, and an anti‑greenwashing rule.

SDR is a set of rules for UK asset managers and distributors of investment products. Its purpose is to ensure that products marketed as sustainable genuinely meet defined standards and provide clear, transparent information to consumers.

Key Features of SDR

Invetsment Labels

These labels are optional- providers may use them only if their funds meet the required criteria. Each reflecting a different type of sustainability objective and investment approach.

  • Sustainability Focus

Funds that invest mainly in assets that are environmentally and/or socially sustainable.

  • Sustainability Improvers

Funds investing mainly in assets that have the potential to improve environmental and/or social sustainability over time.

  • Sustainability Impact

Funds that aim to achieve a positive measurable impact in relation to an environmental and/or social outcome.

  • Sustainability Mixed Goals

Funds that invest in line with a combination of 2 or more of the other categories.

Non-Label funds

Investment funds that consider sustainability factors but choose not to use one of the FCA's official sustainability investment labels, or use only basic ESG integration. This will ensure any sustainability-related claims are transparent and reliable. For funds that do have sustainability features but choose not to apply a label, there is a requirement to provide certain disclosures.

Clear Disclosures

Products using sustainability labels—or sustainability-related terms, must provide:

  • Consumer-facing disclosures: These standalone documents are simple summaries for investors that explain the sustainability characteristics of a fund, to help you make informed decisions.
  • Pre-contractual disclosures: More detailed information about the sustainability characteristics of a fund.
  • Ongoing disclosures: Provide regular updates on how the fund is performing against its sustainability objectives, or characteristics.

Naming & Marketing Rules

Products must follow strict rules on how sustainability-related terms like “green,” “impact,” or “sustainable” are used in names and marketing materials.

Anti-Greenwashing Rule

All FCA-authorised firms must ensure that any sustainability-related claims are fair, clear, and not misleading.

What are Consumer-Facing Disclosures and Product Reports?

Consumer‑Facing Disclosure for a non‑labelled product provides a short, accessible explanation of the product’s sustainability related features.

 

Product Report provides an annual, factual overview of any sustainability‑related features of the product, outlining how these elements have been applied in practice over the year.

Please find our Product Reports in the section below.

Our product reports

Our views on sustainable investing