Investments  

ESG credentials still do not wash with advisers

ESG credentials still do not wash with advisers
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The majority of financial advisers find it difficult to measure environmental, social and governance issues when it comes to advising clients on investment choices. 

A poll, carried out ahead of FTAdviser's Financial Advice Forum, which returns as an in-person conference on September 22 in Bracken House, London, asked what was the biggest concern to advisers when it came to ESG.

According to the poll, most respondents cited concerns over verifying and measuring ESG credentials.

Only 13 per cent said they were concerned about how to broach the ESG conversation with clients, while 19 per cent of respondents said understanding what ESG funds are available was the biggest concern.

Over the past few years, advisers and fund managers alike have expressed concerns over greenwashing, especially with regulators taking a keener approach to scrutinise prominent financial institutions over allegations of greenwashing.

As reported by FTAdviser previously, even having ESG credentials emblazoned on literature and fund reports does not always wash with advisers and the end investor. 

Back in May, this issue was highlighted by senior research analyst at FundCalibre Ryan Lightfoot-Aminoff.

At the time, he said: “With each fund manager doing something different, it has become very difficult for investors to know exactly how responsible a fund really is,” he said.

“What’s more, a lack of trust in asset managers’ ESG claims remains a barrier to investment.”

The issue of ESG will be among the topics discussed at the prestigious host of industry experts about ESG and other topics at our upcoming Financial Advice Forum.

To book your place, visit the events page here