Clients want IFAs to help with ESG investing

But more than half say their adviser has not brought up the topic

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Investors in the UK are increasingly looking for guidance when it comes to environmental, social and governance (ESG) investing, according to a study by M&G Wealth.

Over a third (35%) expect their financial adviser to be an “expert” on the matter, while 23% are waiting on their adviser to bring up these investment opportunities.

Just 9% would not want the discussion to be initiated by their planner.

But the report revealed that over half (51%) of investors claimed their adviser had not brought up the topic of ESG investing.

Despite expectations that advisers will present them with options, M&G Wealth found 24% of investors said they would need more information to be able to decide what to do and 14% did not know how to go about it.

Additionally, fewer people are worried about the performance of ESG products, as just 19% believe investing sustainably would impact their returns.

Need for tools

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, 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.”

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