Why 20% of advisors are talking to their clients about ESG

“Make sure that clients know what they’re getting and, obviously, how that might impact their portfolio returns and their dispersion of returns,” he said, noting that advisors who take the time to educate their clients are winning, and retaining, new business.

Freyman said clients are becoming much more vocal than previously and are also learning more about ESGs. So, they’re driving more of the innovation in the marketplace.

“I think we’re seeing a lot more focus and sophistication on what the actual real world impacts are from an investing strategy,“ she said as she also reiterated the importance of understanding the various strategies and their processes.  

“That’s sustainable investing 2.0,” Freyman said during the series of two roundtables. “There are really going to be very exciting times ahead from what we’re seeing, like: what is the link on the ground from the companies’ issuance and projects back to the investor? I think that will be an exciting phase.”

Needham reminded advisors this is a journey, not a destination. But, he said, “that excites me because it essentially means that change is afoot, and we can make a difference. We’re voting with our dollars, and they’re big dollars.”