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ESG and sustainable finance update: FCA labelling and anti-greenwashing changes; EU Taxonomy guidance; EBA climate dashboard; ISSB adoption roadmap—March 2025

Published on: 26 March 2025

Published by a LexisNexis Banking & Finance expert
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UK developments FCA amends sustainability labelling and discolsure requirements and publishes related Handbook Notice 127

The Financial Conduct Authority (FCA) has revised its Handbook, effective 28 February 2025, reshaping sustainability labelling and disclosure obligations. The package introduces anti-greenwashing measures across several conduct of business sourcebooks, updates the labelling framework, and adjusts rules for on-demand sustainability information. The instrument also defers the deadline for firms to satisfy on-demand sustainability information requests, shifting it from 2 December 2025 to 2 April 2026. Handbook Notice 127 outlines these amendments, alongside certain other updates made by earlier instruments to different parts of the Handbook. See: LNB News 28/02/2025 34. Sources: FCA 2025/6—Sustainability labelling and disclosure of sustainability-related financial information (amendment) instrument 2025, and FCA Handbook Notice 127.

FCA clarifies sustainability rules do not restrict defence sector investment

The FCA has stated that its sustainability rules do not prohibit investment in, or financing for, defence companies. Although the sustainable finance regime is designed to ensure reliable information and greater market transparency, it does not require financial institutions to treat defence firms differently from those in other sectors...

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