How advisors can help ESG-focussed clients

Around 66% of investors want to make a positive social impact through their investments

How advisors can help ESG-focussed clients
Increasing numbers of investors are seeing financial advising as a two-way street, demanding their advisors to listen more to their needs.

A survey by Natixis revealed that whilst the majority of investors trust their advisors most when it comes to their investment decisions, there is still the need for these financial advisors to be all ears.

These clients said listening would enable their advisors to recommend certain investment routes that better align with their personal principles, especially those that relate to environmental, social and governance (ESG) values. As a matter of fact, two-thirds of the surveyed investors would want to have a share of positive social impact through their investment.

However, the survey noted that such investments are difficult to achieve with passive funds that own all the companies in a broad market index.

Nearly three-quarters of the investors surveyed claimed that they would not want to own shares in a firm that violates their personal principles. More so, two-thirds said they would ditch their shares if a firm had negative social and environmental issues.

For 83% of investors, it is important to invest in firms that are ethically-managed. Meanwhile, 70% would want to put their investments in firms with good environmental records.

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