Similar words can describe different approaches
ESG stands for environmental, social and governance. MoneyHelper describes funds that avoid certain industries or focus on ESG practices, and notes that definitions of ethical or sustainable can differ between providers.
Read the current policy rather than treating the name as a complete description. Keep questions about exclusions, selection methods and what the fund can still hold beside the original document. This guide does not certify that a fund meets your values.
Check which labelling rules apply
The FCA explains sustainability labels for funds with different goals. It oversees the regime but does not approve the use of a label. A label is not an FCA endorsement or an investment-suitability decision.
The FCA also explains that some funds lack labels because the provider has not chosen one, the criteria are not met or the fund is outside the rules’ scope. It lists overseas funds and pension funds among scope examples. Absence of a label alone does not settle a fund’s sustainability claims.
Sources: FCA: Sustainable investment labels and anti-greenwashing
Keep claims and evidence separate
The FCA describes greenwashing as presenting a product as better for people or the planet than it actually is. Keep the stated objective, approach and available progress information together, and ask the provider to explain unclear claims.
Investments can fall as well as rise. Past performance does not predict future returns. An ethical or sustainability description does not guarantee returns or remove losses. All Pensions does not rank funds, measure their impact or recommend switching based on a label.
- Which dated policy explains the claim?
- What does the policy include or exclude?
- Which rules and disclosures does the provider say apply?
Sources: FCA: Sustainable investment labels and anti-greenwashingFCA: Risk and returns
Sources & review
- MoneyHelper: Pension investment optionsChecked 2026-10-04
- FCA: Sustainable investment labels and anti-greenwashingChecked 2026-10-04
- FCA: Risk and returnsChecked 2026-10-04
Next scheduled review: 2027-01-04. Provider details can change sooner. Use the official website for the current contact route.
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