Ensuring retirement clients are not misled by fund names or marketing, setting clear sustainability related objectives, explaining fund policies – including real world aims, as applicable – and reporting on how things are going should be straightforward for any fund promoted as ‘sustainable’.
Scheme providers should also welcome the general anti-greenwash rule and disclose ‘surprise holdings’ as useful safeguards for all.
We cannot predict how providers will respond when this goes live, but we do know individual funds will have the option to either adopt the rules or stop calling themselves sustainable.
Whichever route a fund takes, product providers will be able to offer free switches when needed – as most do already. We need to deal with this swiftly and look forward not back.
The new regime will also make it possible for schemes to consider whether or not members can access funds that encourage improvement, hold demonstrably sustainable assets and focus on solutions companies (ie the three labels).
This must be better than guessing what any given member might want. It may even enthuse and help engage some members.
Julia Dreblow is founder SRI Services
