Source · Select Committees · Treasury Committee
Recommendation 16
16
Accepted
Paragraph: 130
Financial products should be clearly labelled to allow consumers to assess the relative climate impacts...
Recommendation
Financial products should be clearly labelled to allow consumers to assess the relative climate impacts of products and to make choices accordingly. However, allowing every firm to create its own consumer sustainability labels may lead to inconsistencies and consumer confusion. The Treasury and the Financial Conduct Authority should consult on the merits of making climate or carbon labels for consumer financial products mandatory, as a means to encourage innovation. The FCA should consult on how best to make such labels readily and widely understood.
Government response summary AI-generated
The government will work with the FCA to introduce a sustainable investment label, enabling consumers and retail investors to compare the impacts and sustainability of their investments.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
130
Government Response
Accepted
HM Government · verbatim extract
Accepted
As detailed in the green finance policy package 16 which the Chancellor announced during his Mansion House Speech on 1 July 2021, the Government will work with the FCA to introduce a sustainable investment label so that consumers and retail investors can clearly compare the impacts and sustainability of their investments for the first time. Please refer to the FCA’s response for further information.
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