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What is PAS 7342:2025 Sustainable investment funds – Specification about?
Building on its sustainable finance predecessors, PAS 7340/BS ISO 32210 and PAS 7341, PAS 7342:2025 specifies how sustainable investment fund managers should assess, monitor and communicate fund sustainability attributes.
Who is PAS 7342:2025 Sustainable investment funds – Specification for?
- Fund managers
It might also be of interest to:
- Wealth managers;
- Independent financial advisers;
- Retail and institutional investors
- Discretionary managers;
- Portfolio planners;
- Fund platforms; and
- Regulatory/legislative/policy bodies.
What does PAS 7342:2025 Sustainable investment funds – Specification cover?
PAS 7342:2025 specifies requirements for the design, implementation, monitoring and communication of sustainable investment funds.
NOTE: This relates to individual funds whether investment is held in a single asset type, multi-asset or portfolio of funds, unless indicated otherwise.
It covers requirements on the processes by which a fund is designed, managed and presented to the market, including:
- the design and documentation of sustainable investment funds, including the naming of such funds;
- designing and communicating sustainable fund objectives, strategies, policies and approaches;
- communication of sustainable fund decision making and management processes, including investment selection, stewardship activity, disclosure, governance and ongoing monitoring;
- demonstrating governance of investment selection, management and review processes, including stewardship and engagement processes; and
- aiding the verification of sustainability-related elements of fund strategies, categorization and labelling.
PAS 7342:2025 also covers requirements for the fund manager on how to:
- demonstrate to intermediaries (e.g. financial advisers and portfolio managers) and individual investors that a fund meets its published sustainability objectives and criteria; and
- provide evidence of sustainability.
NOTE: PAS 7342:2025 does not cover the accuracy of fund information and any supporting documents provided by fund managers, or how the validity of that information is to be assessed by potential investors.
Why should you use PAS 7342:2025 Sustainable investment funds – Specification?
- Authoritative: PAS 7342 has been developed by industry experts.
- Practical: It offers practical support, clarification, examples and notes on good practice in how to design, implement, monitor and communicate the sustainability attributes of investment strategies accurately.
- Preventative: The PAS focuses on avoiding greenwashing and clients being misled.
- Current: It reflects the significant increase in interest in sustainable investing in recent years and the latest regulatory developments.
- Value-added: PAS 7342 gives fund managers an additional layer of good practice on top of relevant regulation.
- Flexible: The standard sets out requirements for funds themselves to follow and helps financial advisers to accurately identify the funds that align with their clients’ sustainability needs. And it helps investors see what they should expect from fund managers and how to instruct their wealth managers/financial advisers where to invest.
- Pragmatic: Complementing the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements, this standard is consistent with regulatory frameworks.
What has changed?
PAS 7342:2025 is a new publication.
