Talking to your clients about ESG

Findings showed that 70% of advisers currently have a client interested in ESG issues, and 77% of respondents had discussed ESG factors during client fact finds.*

With customer interest in ESG and responsible investment only likely to rise (80% of millennials now prioritise responsible investment), it’s key that advisers have the right information to hand to be able to confidently discuss how both of these things could impact investments. 

Understanding the challenge

The rapid rise of ESG has meant it’s appeared on the radar of many advisers quickly, along with a vast amount of information that needs to be understood.

For example, advisers now need to know and understand ESG data and scoring systems,  and how this information impacts investment decision-making and possibly fund performance. The landscape in which we live and invest is also rapidly evolving, from expected changes such as legislative reform to unseen and unprecedented events such as the COVID-19 pandemic.

Advisers also need to make sense of many new and different terms, and be able to confidently explain the difference between sustainable, responsible, ethical and impact investing. It helps to also be able to provide examples of ESG in practice – and all of this of course, is on top of usual considerations such as time to retirement and risk appetite.

How we’re helping

We remain committed to our advisers, and part of this commitment means providing ongoing information and articles that explain the finer points of ESG and responsible investment.

We’ll continue to provide a range of materials, from podcasts to articles and case studies which you can find in our newsletter and on our content hub.

*Source: Royal London, Responsible investment pensions research, December 2019