Advisers are the key to unleashing significant pent-up demand for responsible investment among clients, new research shows.
The survey of 1,504 adults aged over 35, conducted by Toluna on behalf of Quilter, found that most people would be happy to discuss responsible investing.
Despite the surging demand for responsible investing, the research found that only 6% of clients had already had a conversation on the topic.
But the vast majority (82%) would consider having this conversation in the future.
Also, enthusiasm for the strategy spans age ranges, although younger clients were more likely to consider it.
Eighty seven per cent of those aged between 35 and 54 said they are likely to speak to their financial adviser about responsible investing, while 76% of over 55s said the same.
Two-thirds of clients that have already had a conversation with their financial advisers about responsible investments changed investment strategies.
This shows a high conversion rate following these conversations.
Quilter Financial Planning investment director Rick Eling said the growing impetus around responsible investing does not automatically lead to action.
“Very few advised clients are joining the dots and having a conversation with their financial adviser about how they can change their investment strategy to align it with their values and beliefs,” he said.
Eling pointed out the research shows advised clients are “extremely open” to the idea of at least discussing how to invest responsibly but may need their adviser to make the first move.
He said: “And it seems a little conversation can go a long way, as the vast majority of advised clients who did in fact talk to their adviser about what responsible investing is went on to adjust their investment strategy to align it with their values.
“Luckily for advisers, there is no shortage of opportunities to initiate the ESG conversation this year. There are climate summits a-plenty with the UK hosting the next UN Climate Summit in the autumn.
“Advisers could use the momentum generated in recent years, as well as the attention on all things ESG as a result of the pandemic as a conversation starter with their clients.”
This article originally appeared on money marketing.
