The influx of sustainably conscious investors is great news for financial advisors, yet many feel a lack of confidence in their abilities to present the facts to their clients. However, this lack of confidence opens up an exciting new opportunity for product providers to equip advisors with the resources and knowledge to report on sustainable investments. Currently, half of advisors use ratings and assessments from external sources for credibility purposes, yet more information about the sustainability of these initiatives could help advisors to more effectively convey the import facts.
Product providers can offer comprehensive guidance on these investments, from materials such as fact sheets and whitepapers to seminars, webinars and other educational tools. Providing this information would bolster the confidence of financial advisors to discuss environmental, social and governance (ESG) issues with their clients.
The need for information is escalating as more investors pause to consider the implications of their portfolios on the environment. Financial advisors who can provide knowledge on sustainability initiatives automatically stand out as more reliable and responsible then their counterparts. By offering a variety of materials, product providers can further assist advisors in their conversations with potential investors when it comes to ESG factors.
The ability to discuss sustainable investments from an educated perspective sets financial advisors apart from their competitors. However, due to the broad knowledge required to present information to clients, many advisors feel unprepared. Product providers have the ability to empower advisors by giving them the materials they need to understand the complexities of sustainable investments and confidently explain the benefits of these initiatives to their clients.
In today’s market, investors want more information and knowledge on the sustainability of their investments. Financial advisors are uniquely poised to answer these queries, and with the right guidance and materials, they can confidently provide their clients with the most up-to-date ESG information. Product providers have the unique opportunity to aid advisors in this endeavour and allow them to choose the best methods and materials to accurately discuss sustainable investment options. Together, product providers and financial advisors are uniquely situated to help bring sustainability to investor portfolios.