The FCA-established Advisers’ Sustainability Group has released a new report calling on financial advisers to ask every client about their sustainability, ethical, environmental and social preferences for investing as part of their routine fact-finding process.
The industry-led working group, which brings together advisers, wealth managers, responsible investment specialists and other experts, launched the report this week setting out practical guidance for advice firms looking to build sustainability into their advice process.
The report makes the case that sustainability should be treated as a mainstream part of financial advice, rather than a conversation reserved for clients who specifically identify as “ethical” investors.
Among its key recommendations, the report also says that advice professionals should treat material sustainability risks as financial risks that may affect clients’ long-term financial plans.
Dan Godfrey, chair of the group, said in the report: “When advisers get sustainability right, they do more than comply with regulation – they are aiming to protect portfolios… and unlock new commercial opportunities.
“Clients are increasingly conscious of sustainability risks and many want their investments to reflect their values. Advisers who can have informed, confident conversations about climate, nature, social issues and stewardship will differentiate themselves.”
The guide is free to read.
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