Morningstar Sustainalytics anticipates a slow adoption of UK's new ESG labels due to stringent requirements and lower demand.

Morningstar Sustainalytics predicts a slow start for the UK's new ESG labels, as asset managers take a "wait-and-see approach." Fund managers find the requirements to qualify for a label tougher than expected, and demand lower than anticipated. The Financial Conduct Authority's (FCA) Sustainable Disclosure Requirements (SDR) implementation date is approaching, and enthusiasm for sustainability labels has waned due to more stringent criteria and lower demand.

July 09, 2024
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