He adds: “It’s imperative that advisers... know how to probe at managers’ approaches. If not, it undoubtedly increases the risk of greenwashing because we know a fund’s name will not always reflect what is happening under the lid.”
Medlock reflects how, “at times, it can feel like we’re all speaking different languages and using terms interchangeably.
“We know the Treasury is working with the FCA in developing a new labelling regime and this will significantly help everyone in the industry.
“Until then I’d encourage advisers to familiarise themselves with concepts like the spectrum of capital and the Investment Association’s responsible investment framework. Getting familiar with the different terms and definitions can really help support better client conversations in this area.”
Chloe Cheung is a features writer at FTAdviser
