Advisers who ignore ESG do so at their own R-I-S-K

May 20, 2022

Investment News wrote a great article detailing how as interest in ESG investing grows over time, advisers are rapidly reaching an inflection point with clients who want their assets to line up with their values…

A FlexShares survey last year of 285 people who work with financial advisers found that 72% of clients were at least somewhat interested in sustainable investing. However, just 13% of people said that their advisers had ever suggested sustainable or ESG funds to them.

More than half of the people who weren’t interested in ESG investing said they might change their minds if their advisers recommended it or explained how it could help their portfolios, that survey found.F

“This is being driven by clients at this point. Clients are pushing advisers, who are coming along very begrudgingly,” said Peter Krull, whose firm Earth Equity Advisors offers only sustainable, responsible and impact investments. “[Advisers] believe the myth that if you invest sustainably, you’re going to get a lower return.”

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