Over 80% of independent financial advisers (IFAs) have a positive view about the importance of ESG in portfolio construction, according to a new study by Foresight Group LLP.
The research by the private equity investment manager, conducted among over 100 IFAs, revealed that four in five are now saying it is important when building client portfolios – including 28% who said it is “very important”. This compares to 65% of advisers who described this as important last year.
UK retail investors also seem to be adopting the same stance, albeit more gradually, Foresight stated. The research revealed that 12% of IFAs believe over half of their clients now express a preference for ESG investing, compared to 9% in 2020.
Foresight also suggested that financial intermediaries have remained conscious of their role in the move towards sustainable investing, however, with 45% of respondents saying that education sessions would encourage them to suggest ESG funds more frequently to clients.
Furthermore, the study’s respondents are expecting over half of their clients will be invested in portfolios in which ESG is a core component in an average of 4.7 years.
In terms of delivering advice and selecting suitable ESG strategies for clients, Foresight suggested the greatest challenge is the lack of an industry-wide definition of ESG investing, according to 49% of advisers. The lack of an industry-wide gold standard for ESG criteria and a lack of transparency when reporting ESG activity were also each cited by 20% of respondents.
Foresight Capital Management partner, Mark Brennan, said: “We are enthused to see that IFAs are increasingly open to joining the global movement towards sustainable investing.
“Major steps forward have been taken this year in helping companies and investors define what qualifies as a sustainable economic activity or investment, although the investment industry is still some way from providing standard definitions.
“We pride ourselves on being a sustainability-led investment manager, and we are certainly prepared to take on responsibility in helping the investment industry to shape sustainable investing in the future.”
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories