Over half of financial advisers (52%) would consider ESG criteria only at the client’s request when building retirement portfolios, according to research from Aegon and Next Wealth.
Demand for ESG in retirement portfolios is low although the findings suggested that advisers are still taking action, with a third (31%) saying ESG is among the factors considered when selecting funds.
A further 3% said they apply a strict ESG screening process to all funds selected for retirement clients.
The research for Aegon and Next Wealth’s report, titled Managing Lifetime Wealth: retirement planning in the UK, surveyed 212 financial advisers in December 2020.
Aegon managing director for investment solutions, Tim Orton, said there has been a “sea-change” in responsible investing with individuals increasingly looking for answers on how their investments are contributing to “real-world change”.
“This has been furthered by increased regulation and momentum from the government pushing forward it’s green agenda for investments,” Orton said.
“The research shows advisers are taking this seriously and considering ESG factors when building portfolios, even if demand amongst retirement clients hasn’t yet caught up with the wider investment community.”
However, Orton also warned that a lack of industry standardisation means advisers face challenges when dealing with the different ethical considerations of their clients.
He added: “Firms have developed their own approaches, but as the industry shifts towards greater ESG adoption, more work is needed to support advisers to better compare ESG funds and explain strategies when building portfolios.”
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