Source · Select Committees · Treasury Committee
Recommendation 16
16
Paragraph: 130
Financial products should be clearly labelled to allow consumers to assess the relative climate impacts...
Conclusion
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.
Paragraph Reference:
130
Government Response
Acknowledged
HM Government
Acknowledged
As detailed in the green finance policy package16 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.