The delayed Sustainability Disclosure Requirements (SDR) will be released in September, the Financial Conduct Authority (FCA) has confirmed.
The latest batch of sustainable investment requirements and investment labels was announced more than a year ago with a discussion paper in late 2021. However, their implementation has been subject to delay.
Speaking at the Sustainable Investment Festival, FCA director of environmental social and governance Sacha Sadan said there had been a delay of "about six weeks".
"I hope that we can be allowed that in the context of what is going on in the world. It is very difficult to make this work in one go."
He said there had been "uncertainty with politics" linked to the progression of the Financial Services Bill and legislative timetables but added: "It is coming in September. It is very important that we get it right."
Sadan added labelling was all-important. "At the moment anyone can say my fund is green but it won't have the same metrics, or KPIs. Soon you will have labels for consumers. We're going to put the metrics in place, and if you say your fund is green, you'll have to say why.
"They [consumers] do want to buy - that's why we are all here. We are going to put those guardrails in place, put the metrics in place.
"If you say it is a diversity fund - how are you proving that?"
Sadan also said there needed to be a label for consumers that says a fund is working on its ESG position and engaging with companies. "They [consumers] understand that nothing is perfect. Tell them that."
Sadan said funds that did not come up to standard with new ESG regulations would have time to improve.
"You will have time to get those metrics. If you say your fund is trying to improve diversity then you should be trying to improve diversity. It should not be difficult to come up with some metrics for your own funds.
"The world is moving quite fast. The world is evolving.
"Keep evolving your funds to be fit for purpose. We will give you time but if there comes a time, you will not be able to use certain words or labels."
He added doing nothing was not an option for the regulator. "It is about credibility - if we do nothing it will be the wild west with ‘carbon cowboys'
"Having some guardrails will help on trust. We cannot say we will be perfect straightaway but it will help the credibility of the industry."