On January 25, 2023, ISDA responded to the Financial Conduct Authority’s (FCA) consultation CP22/20 Sustainability Disclosure Requirements (SDR) and Investment Labels. In the response, ISDA highlights its support for the approach the FCA is taking by not developing rules that specifically relate to derivatives and instead monitoring developments and implementing guidance to increase transparency on the use of derivatives in sustainable investment products. ISDA recommends the FCA pursues a principles-based approach to setting out SDR and investment labels, bearing in mind the importance of international coherence and interoperability of rules. The response also outlines the contributory role of derivatives in sustainable finance, including new products such as sustainability-linked derivatives.