AEW First to Adopt FCA’s ‘Sustainability Impact’ Label Under New SDR Rules

3 July 2024

We are thrilled to announce that our client AEW has become the first asset manager to confirm Day One adoption of the Financial Conduct Authority’s (FCA) ‘Sustainability Impact’ label under the new Sustainability Disclosure Requirements (SDR). This is a significant milestone in the development of sustainable finance in the UK.

The FCA’s new label is designed to help investors identify funds that are genuinely making a positive impact on society and the environment. To qualify for the label, funds must meet a number of stringent requirements, including:

Having a clear and measurable impact objective and Theory of Change
Using a robust impact measurement and management system
Reporting transparently on their impact performance

The Good Economy Assists in Setting Up AEW’s UK Impact Fund

Thanks to the bespoke impact measurement and management system that TGE designed for the Fund (which aligns with the best practice approaches described by Impact Frontiers, the traits of Place-Based Impact Investing and the UN Sustainable Development Goals) and the independent annual impact report that TGE produces, AEW is the first asset manager to be ‘Day One’ ready for the new labelling regime.

Edward Long, Portfolio Manager at AEW, commented: “Our UK Impact Fund is committed to creating a positive impact for people, place and planet, while helping clients achieve their return objectives. With the support of the Fund’s investors, we have worked closely over the past two years with The Good Economy, Eversheds Sutherland and the FCA to align the Fund with the SDR regime, ensuring that the place-based impact investing strategy we have adopted meets the new stringent criteria. Our thanks to all our partners for their commitment to this project which allowed AEW to be among the first to adopt the new ‘Sustainability Impact’ label.”

We are proud to have helped AEW with our IMM methodology and believe that the FCA’s new label is a valuable exercise for investors who are looking to make a positive impact with their investments.