Sustainable Product Labelling Information Hub

A well-designed labelling regime can play a critical role in preventing greenwashing and guiding capital toward sustainable outcomes.

In July 2025, the Australian Government commenced working on the proposed sustainable investment product labelling regime, as outlined in the Australian Sustainable Finance Roadmap.

On our Information Hub you will find all the relevant information you need to help you understand product labelling and what the proposed framework means for you.

What is sustainable investment product labelling?

Product labelling or naming regimes set rules for how sustainability-related terms can be used in product names and marketing materials. They protect consumers from misleading claims and promote trust.

If you imagine yourself as a customer at the supermarket, you know that a jar of mānuka honey is different to other varieties of honey as it must be derived from the mānuka tree, which is native to Aotearoa New Zealand and parts of Australia. As mānuka honey is considered a premium export in New Zealand, standards are in place to ensure that any product sold and labelled as mānuka honey must adhere to a scientific definition set by the New Zealand government.

Similarly, a sustainable investment product labelling framework can provide confidence that a financial product which is labelled as ‘sustainable’ (or similar terms) has met certain standards.

88% of Australians expect their super or other investments to be invested responsibly and ethically. Similarly, 87% of Australians expect the money in their bank account/s to be invested responsibly and ethically. 65% would be motivated to invest more if they could be sure their investments were making a positive impact in the world.

- From Values to Riches 2024: Charting consumer demand for responsible investing in Australia. RIAA

Where does sustainable product labelling fit in?

Sustainable product labelling is one of the ways in which providers may use to communicate details of the characteristics of their products.

Information and transparency are vital for informed consumers, quality products and strong market integrity. To assist with comprehension and application, there are different ways of organising this information. For sustainable finance, there are four key concepts when it comes to information about financial products:

Accordion with Tables

Product Labelling/Naming

Description	Requirements for consistent labelling, mostly for marketing purposes
Key features	Usually includes definitions, requirements and restrictions for using specific terms
Example	European Securities and Markets Authority (ESMA) Naming Guidelines require strict criteria before a fund name can use sustainability-related terms. E.g. to use “sustainable”, a fund must commit to investing more than 50% of the portfolio in sustainable investments as defined under the Sustainable Finance Disclosure Regulation (SFDR)
Examples of other frameworks	UK SDR; Global definitions of ESG approaches (GSIA/PRI/CFA Institute); RIAA Certification Product Labelling Guidance Note; LuxFLAG; India’s binding regulatory guidance; Singapore’s binding regulatory guidance
Objective	Restricts the use of certain terms without meeting specific criteria, largely to mitigate greenwashing

Classifications

Description	Groupings of financial products according to shared sustainability-related characteristics
Key features	Usually establishes criteria for products to fall into each category. Sometimes classifications have corresponding insignia
Example	EU SFDR: 4 types of classification (6, 8, 8a and 9) based on the way in which ESG characteristics are promoted by the fund and the investment objective
Example of other frameworks	UK SDR, RIAA Sustainability Classification Initiative
Objective	Helps differentiate sustainability-related products, largely to assist consumers and retail investors

Disclosure

Description	Rules governing sustainability-related information that needs to be made available
Key features	Typically describes what, and how, information should be disclosed
Example	EU SFDR: requires specific disclosure about the entity and financial products. E.g. how an entity integrates sustainability risks into investment decision-making processes; sustainability characteristics of products
Examples of other frameworks	Australian climate-related financial disclosure regime; NZ climate-related disclosures regime; UK SDR; CSRD; ISSB; TCFD; TNFD; Transition Plan Taskforce Disclosure Framework; Stewardship Codes
Objective	Establishes a baseline for disclosures, facilitate oversight and compliance, and simplify finding and comparing information

Taxonomies

Description	Common language system that allows assessment of whether certain economic activities meet prescribed sustainability standards and align with policy commitments
Key features	Typically includes a list of economic activities and are considered to align with specific social or environmental goals, with technical criteria to assess alignment
Example	EU Taxonomy identifies economic activities that can be considered environmentally sustainable. The SFDR requires certain funds to disclose alignment with the EU Taxonomy
Examples of other frameworks	Australian Sustainable Finance Taxonomy; NZ Sustainable Finance Taxonomy (under development); Hong Kong Taxonomy for Sustainable Finance, Singapore-Asia Taxonomy for Sustainable Finance
Objective	Helps with understanding whether an economic activity (usually assets, projects, facilities or measures) meets the prescribed social and environmental criteria

These concepts can be interdependent and reinforced with each other. Together, they create a coherent framework that supports sustainable investment, regulatory oversight and market integrity.

Find out more

Are there examples of other product labelling or naming frameworks?

Yes. In the absence of legislated framework in Australia, RIAA has led the way in providing a framework for industry through its Responsible Investment Certification Program.

RIAA Certification

Among the robust criteria products must meet to be reach the Responsible Investment (RI) standard are principles-based guidelines for product labelling which require providers to:

Make honest claims and are appropriately labelled:‍
a. are named to accurately reflect the claims pertaining to social, environmental, sustainability and/or ethical outcomes or responsible investment approach applied to the product; and
b. describe what could be reasonably expected by an investor in terms of the portfolio holdings of the product; and‍
c. ensure all claims made about the product are honest and not false or misleading nor include puffery, un-substantiations and unqualified predictions.

You can search for RI Certified products which meet your sustainability priorities at our certification directory.

Principles-based vs prescriptive frameworks

In the Government's first consultation on sustainable investment product labels, it sought advice on whether a principles-based approach or a prescriptive approach to the framework should be taken.

RIAA’s position is that the framework should be a primarily principles-based approach with prescriptive elements and anchored in existing industry standards which have been proven to work in the Australian market.

So, what’s the difference?

	Principles-based	Prescriptive
Approach	Outlines broad objectives, allowing flexibility on how they may be met	Outlines specific requirements or restrictions providers must meet to reach objectives
Example in RIAA Model	Ensuring all claims made about the product are honest and not false or misleading	Minimum of 80% of assets meeting sustainability objectives
Benefits	Enables diversity of products and promotes innovation	Provides clear and specific direction, setting clear expectations between consumers and providers
Limitations	Overly broad language may increase risk of ambiguous or unclear guidelines	Overly rigid requirements risk excluding integrated or innovative approaches