Navigating the FCA's Anti-Greenwashing Guidelines

The Financial Conduct Authority (FCA), the UK's regulatory body for financial services institutions, has unveiled new guidelines to combat greenwashing in sustainability disclosures. Set to take effect on May 31, 2024, the FCA mandates that all businesses ensure their sustainability references are fair, clear, and proportionate to the product or service's actual sustainability profile. While the guidelines lack explicit directives on presentation, they stress the importance of complete and substantiated disclosures. For a detailed overview, you can refer to the FCA's published guidance document available here.

Practical Steps for Compliance

With the deadline for compliance looming, businesses must act swiftly to align with the FCA's anti-greenwashing rule. Here are three practical steps you can take:

• Assess Sustainability Statements: Review all customer-facing communications and marketing materials for sustainability references. This includes website content, annual reports, and even visual elements like images and logos.
• Ensure Accuracy and Consistency: Verify the accuracy and consistency of all communications regarding sustainability characteristics. Claims must be factually correct and coherent across all channels.
• Establish Governance and Oversight: Implement robust oversight processes to monitor sustainability communications. Regular review and evidence-based substantiation are essential to mitigate greenwashing risk. Failure to comply may lead to enforcement actions by the FCA.
• You can find more information on the steps you can take here .

Leveraging FirstSpirit Digital Accessibility and Quality

FirstSpirit Digital Accessibility and Quality (DQM) solution offers invaluable support in navigating the complexities of sustainability disclosures. By creating inventory reports to identify specific terms or phrases, firms can ensure compliance with regulatory guidelines. Additionally, FirstSpirit can assist in setting up checkpoints to flag potential issues and verify the substantiation of sustainability claims. With FirstSpirit's expertise, businesses can streamline their compliance efforts and mitigate the risk of greenwashing.

For more information on FirstSpirit Digital Accessiblity and Quality, get in touch with one of our experts