Responsible investment is a huge topic, with ever-changing regulation, approaches and products. Financial Advisers need to buckle in for the journey, treating environmental, social and governance (ESG) factors as an on-going area of focus rather than a ‘set and forget’ investment.

But with so much change, where should Financial Advisers focus their attention? Here are five simple steps you can take right now to keep on top of all things ESG, helping your clients get the most bang for their buck.

1. Understand and respond to changing regulatory requirements
   It’s a never-ending task – you already know that the volume of regulation around ESG is huge and it isn’t slowing down any time soon. Build in regular time to stay on top of changes, seeking advice where necessary.
2. Continually assess the range of funds available
   What funds can help meet your responsible investment needs? Again, funds – and products – change quickly. Identify where you want to be, and what’s important to your clients.
3. Demand standards from managers
   We suggest as a minimum that managers are signed up to UNPRI and, particularly for equities, the UK Stewardship Code
4. Monitor managers’ performance and approach to ESG
   Differentiate between managers and their approach to ESG, whether it’s for passive or active funds, not all managers do it the same.
5. Share the evidence
   There’s lots of information that is available, e.g. voting records, ratings, carbon footprinting. Where possible, use this to evidence the approach you are taking with your clients, to give them the comfort they need.

Want to find out more? Our recent webinar discussed responsible investment in detail – and, of course, don’t hesitate to get in touch if you’d like to discuss our approach further.