Young clients let down by advisers over ESG – report

A third (32%) of investors surveyed by Oxford Risk said their adviser does not address their ESG investing needs.

Almost half (46%) of adults with investment portfolios managed by wealth mangers had never been contacted by them about their attitude to ESG and responsible investing.

Less than two in five (37%) said their portfolio reflects their views on sustainable investing.

Nearly one in three (31%) said they would invest more if their portfolio better reflected their views on ESG and responsible investing.

Greg B Davies, head of behavioural finance at Oxford Risk, said: “Accounting for investors’ sustainability preferences needs a deeper understanding both of financial personality, and that suitability – matching investors to the right investments for them – is at the heart of helping people use their wealth for good.

“It is surprising that nearly half of investors claim they have never been contacted by their advisers about their attitude to responsible investing and ESG, and fewer than two out of five say their investment portfolio doesn’t represent their views on responsible investing.

“Advisers could be missing out, as substantial numbers of investors would consider investing more if their money was focused on ESG and responsible investing, something that we can help support as part of their advice suitability process.”

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Consumer Intelligence surveyed 457 investors on behalf of Oxford Risk between 22 and 26 July.

Separate research from Foster Denovo last month found that 82% of advised ESG investors had initiated the conversation about sustainable investing themselves. 

Seven in ten of investors not investing sustainably had not had a discussion with a financial adviser about ESG, suggesting advisers play an important role in giving investors the knowledge and confidence to invest sustainably.

Almost two thirds (63%) of the investors surveyed by Foster Denovo said they have changed their minds over the past three years about the importance of the environment, with half (51%) saying they felt very strongly or strongly about the impact that climate change could have on their savings and investments.

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