The Premier Miton Global Renewables trust has changed its investment objective after opting out of the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) labelling.
As such, the word “sustainable” has been removed from its strategy and replaced with the word “similar”. It now outlines that it invests in “companies operating primarily in the renewable energy sector, as well as other similar infrastructure investments”.
The FCA’s labels – which come into effect on 2 December – are an effort from the industry watchdog to combat greenwashing and ensure that funds affirming to be sustainable are doing so.
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It said its primary goal with the policy is to make sure “financial products that are marketed as sustainable should do as they claim and have the evidence to back it up”.
Funds adopting the new labels that will allows them to use environmental, social and governance (ESG) language will go under one of four sustainability banners; focus, improvers, impact, or mixed goals.
However, Premier Miton said the decision to opt out of the new SDR labelling will not effect how the £41m trust managed by James Smith will be run.
