21st October 2024

SRI Services and Fund Partners Celebrate the 16th Annual Good Money Week

SRI Services, in collaboration with 20 of their fund manager partners, hosted an event to mark the 16th annual Good Money Week at the historic Museum of London. The event brought together 250 advisers, wealth managers, and fund managers to explore the evolving regulatory landscape and share insights to help clients navigate the future of sustainable investing.

The Challenge of Sustainable Fund Labelling

This year’s event took place against the backdrop of growing frustration among the UK’s leading sustainable investment teams, many of which have not yet received sustainable fund labels. Several fund managers shared their experiences with the Financial Conduct Authority’s (FCA) emerging regulatory processes, expressing concerns about delays and challenges.

Spotlight on Client Demand

The event began with a discussion on fluctuating demand for sustainable investments. UK Sustainable Investment and Finance Association (UKSIF) CEO James Alexander highlighted that while demand remains, there are signs of uncertainty—likely due to the cost-of-living crisis and confusion over what sustainable funds truly deliver. James emphasised the importance of the FCA’s ongoing efforts to increase transparency and clarify language, helping both investors and advisers better understand the available funds. He also urged the government to focus on green growth, rather than pursuing growth at any cost, stressing the long-term benefits for both the UK economy and investors.

SRI Services and Adviser Support

Following this, Julia Dreblow from SRI Services and Fund EcoMarket provided an overview of recent improvements in the support they offer to help advisers navigate the complexities of sustainable investment and ESG funds via the Fund EcoMarket database. Julia also introduced the Adviser Sustainability Group, an industry-led initiative established by the FCA to promote best practices and identify training needs.

Focusing on SDR and Beyond

Two sessions were dedicated to the FCA’s Sustainable Disclosure Requirements (SDR). While SDR has been largely welcomed, it is still considered in its early stages. The discussions addressed areas beyond the current scope of SDR, including overseas funds, ethical investments, and sustainable funds that find the labelling requirements too restrictive.

During a lunchtime session with portfolio managers, participants explored how Discretionary Fund Managers (DFMs) and Model Portfolio Services (MPS) are responding to these changes, and what this means for their clients.

Articulating Sustainability with Confidence

In the afternoon, the event turned to the topic of articulating sustainability with confidence. Fund managers shared their experiences with the challenges of greenwashing (over-claiming) and greenhushing (under-communicating progress), highlighting the complexities compliance professionals face in this rapidly evolving space.

Leading Change and Shaping the Future

Several fund managers presented on the theme of “Leading Change,” covering topics such as corporate improvements in sustainability practices, the circular economy for plastics, biodiversity, impact accounting, and the rise of weight-loss drugs. Discussions also touched on emerging views regarding the pace of positive change, underscoring why clients remain interested in sustainable investments

Keynote Speakers and Visionary Insight

The keynote speeches throughout the day included Sacha Sadan (Director of ESG at the FCA), actuary Mike Clark, and Mark Campanale of Carbon Tracker. The speakers provided a compelling view of the rapidly shifting investment landscape. Sacha engaged in a lively Q&A session, addressing tough questions for over 30 minutes. Mark captivated the audience with his vision of how the clean energy revolution will reshape industries, particularly as energy prices continue to decline.

Positive Feedback and Looking Ahead

Feedback from attendees has been overwhelmingly positive, with many praising the event for its insightful sessions and engaging discussions. SRI Services looks forward to sharing video highlights from the event in the near future.