To improve transparency and quality of sustainability-related, product-level disclosures, market participants should consider the following elements when dealing with and offering sustainability-related products.
4-1
Naming: Naming of sustainability-related products should ensure that the name of the product accurately reflects the nature and extent of the product’s sustainability focus, including promoting consistency with the product’s objectives, characteristics and strategies.
4-2
Labelling and classification: Labelling and classification systems used for the purpose of sustainability-related products should be clearly and correctly explained and inconsistent application should be avoided.
4-3
Objectives disclosure: Sustainability- related products should contain clear disclosures in a form appropriate for the product about sustainability-related objectives.
4-4
Strategies disclosure: Disclosures should be made in product offering documents about the strategies of the sustainability-related products to achieve their sustainability goals.
4-5
Risk disclosure: Sustainability-related products should contain disclosures of material risks unique to the product profile and arising from a product’s focus on sustainability.
4-6
Marketing materials: Marketing materials relating to sustainability-related products should be fair, clear and not misleading.
4-7
Monitoring and reporting: Monitoring of compliance and reporting to customers in respect of the sustainability-related product’s compliance with its objectives and characteristics, containing as appropriate and available qualitative and quantitative information, should be put in place.