ESG Investing  

Investors expect advisers to be ESG experts

Investors expect advisers to be ESG experts
(Alena Koval/Pexels)

More than a third of investors expect their financial adviser to be an expert when it comes to ESG investing, research from M&G Wealth has shown.

Some 35 per cent of 2,000 people surveyed said they expect their adviser to understand environmental, social and governance, with a further 23 per cent anticipating their adviser will bring ESG investing into financial planning discussions.

However, 51 per cent said their adviser or investment manager has not raised the topic of socially responsible or ESG investing with them, and 9 per cent would not want their adviser to mention it.

Despite the majority of investors expecting their adviser to raise the topic of ESG investing, the survey showed a lack of knowledge and certainty among UK investors when it comes to this kind of investing.

Some 24 per cent said they want more information on ESG in order to decide what to do with their investments, and 14 per cent said they were unsure how to go about ESG investing.

Two fifths (41 per cent) of those surveyed said they intend to invest more in ESG products over the next year, with 45 per cent agreeing they will plug more into the vehicles within five years.

Cat McInally, ESG investment expert at M&G Wealth, said ESG considerations are increasingly a part of our everyday lives and decision-making processes. 

“From changes to our lifestyles through to how we invest our savings, the fact that people are coming to together to make a difference to our lives, communities, and the planet can only be a good thing.”

While the current cost-of-living crisis may have taken some people’s eye off the ball in terms of sustainable issues, she added, one simple and impactful thing they can do is consider sustainable investment options for any savings they have.  

“While our research shows, there is clear growing demand for ESG investing, a significant proportion of UK investors are not totally clear on what it is or how to go about it, and this is where it’s vital that advisers are tooled up with all the necessary information they need to help them.”

sally.hickey@ft.com