AREF's Paul Richards on 'fair' and 'clear' greenwashing rules.

The Financial Conduct Authority (FCA) recently closed a consultation on tackling greenwashing in sustainable investment products. The Association of Real Estate Funds (AREF) supports the FCA's proposed regulations, which aim to improve transparency by requiring any reference to a property's sustainability characteristics to be "fair, clear, and not misleading." Greenwashing is less of a problem in real estate due to the ease of monitoring carbon emissions, waste production, and energy and water consumption. The FCA has introduced voluntary labels, such as "Sustainability Focus" and "Sustainability Improvers," to encourage transition activities and upgrades to existing assets. These labels can be used for products marketed to both institutional and retail investors. The FCA's deadline for issuing guidance is May 31, and they have been responsive to industry feedback. [Extracted from the article]