Abrdn has launched a new ESG tool to help advisers plan and review their client portfolios, as research shows that advisers struggle to identify suitable ESG-aligned options for their clients.
A survey by the investment group showed that 42% of advisers find identifying assets or funds that align with their clients’ goals one of the biggest challenges they face when it comes to supporting clients with responsible and sustainable investing, followed by ensuring their own colleagues understand ESG terminology (44%). A third of advisers also encountered challenges with reporting on ESG performance.
More than two-fifths (43%) said they had plans to offer ESG analysis services to all clients in the future, with 41% also continuing to review their compliance processes in line with the roll-out of the FCA’s Sustainability Disclosure Requirements.
As a result, abrdn said the new ESG Hub will allow advisers to select, edit and save clients’ individual ESG preferences; access ESG data at portfolio level; provide visibility of ESG data relating to the underlying companies that make up client’s investments and provide information on relevant SDR labels.
The Hub will also provide advisers with the ability to generate personalised client ESG reports showing how a client’s wrap investments align with their ESG preferences.
Jonny Black, chief commercial and strategy officer at abrdn, said: “While advisers plan to deepen the responsible and sustainable investment support they offer their clients, real barriers remain, including when it comes to easily identifying suitable assets and all-important client reporting.
“This solution is designed to help tackle these challenges that they’re sharing with us head on, and in doing so support better outcomes for clients, as well as unlocking efficiencies for advisers themselves and supporting their compliance efforts.”
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