Dynamic Planner has unveiled a white-paper style sustainability guide for advisers to explore investor preferences for ESG.
Dynamic Planner said the Sustainability Discussion Guide will provide advisers with a better understanding of what is meant by sustainable investment from the perspective of the environment and broader society and how business activities can align for the common good; the risks, impact and investment opportunities to bring about change; and the challenges facing global financial markets as well the actions being taken by global regulators and government.
The risk profiler said the guide will also explore how psychological factors can influence preferences when it comes to sustainable investments and an overview of investment solutions that can be aligned to unique sustainability preferences.
Dr Ben Caldecott, founding director of the Oxford Sustainable Finance Group at the University of Oxford, who wrote the foreword for the guide, said: “The 2021 UN Climate Change Conference is a key moment where governments, companies, and financial institutions will make bold commitments to tackle climate change. Financial firms representing tens of trillions in pounds of assets will be committing to align with the Paris Agreement and shift their portfolios accordingly. These and related developments will further accelerate existing trends in sustainability.
“The transition underway is also unleashing new technologies and business models, helping to drive innovation and productivity improvements in companies around the world, whether public or private. Finding these companies and helping them grow is essential, and also creates unprecedented investment opportunities for investors, especially those who increasingly want to align their investments with environmental and social sustainability. It is also mission critical for tackling the profound environmental and social challenges facing humanity.”
Ben Goss, CEO of Dynamic Planner, commented: “Consumer preference around how we can live our lives more sustainably is rapidly accelerating. With estimates of over £5 trillion of wealth in the UK being passed down generations by the middle of the century, now more than ever we have the opportunity and responsibility to make investment sustainable. Not only does this make sense in continuing to build wealth, but also to deliver positive changes for the benefit of future generations.
“Financial advisers have a critical role to play in helping investors understand these trends and navigate the complexity and ensure that the asset managers they recommend are properly measuring and managing both climate and nature-related risks and impacts. This is hugely important as it will help ensure capital is channelled efficiently and productively to support the vital transition to global environmental sustainability.”
Goss said a recent survey carried out by Dynamic Planner found 54% of advisers felt they needed to increase their knowledge around ESG and sustainable investing.
He added: “Our guide is intended to inform the discussion and conversation between investor and adviser, written and presented in a way that investors can use to explore all of the issues around sustainability further.”
Dynamic Planner’s Sustainability Discussion Guide is available to download HERE.
