Integrating sustainability values into the advice process.

Financial Advisors can readily implement systems to support sustainability values led advice into the existing advice process.

Usually one simple question in the Fact Find such as “Would you like us to consider your sustainability values in your investment advice” results in very high customer engagement. When you consider that on average Advisers using the Oko Adviser platform have 20% of their client base taking into account sustainability, it is clear there is a very real need among clients.

Here are some other key steps to help on this journey:

Understand Your Clients’ Values:

The foundation of value-led investing is a deep understanding of the client’s individual sustainability values. Financial Advisors should make this a core part of their client on boarding and regular review processes. Tools such as sustainability focused questionnaires or structured interviews can help uncover a client’s values and interests in a systematic way.

Integrating into the Advice Process:

Educate Clients:

Advisors can play a significant role in educating clients about the complexities of sustainable investing. This can include explaining the causes and implications of the ESG backlash, dispelling misconceptions about the returns of sustainable investments, and keeping clients informed about the latest developments in regulations and standards. Relying on technology, third party research or creating a simple practice handbook or one -pager can assist in supporting this conversation with client.

Provide transparency:

Advisors can provide transparency to a client, illustrating how closely an existing, or proposed, investment solution aligns to customer values. By holding in depth discussions on how investment recommendations are made, coupled with where both positive and negative exposure. or alignment to values can be found within an investment solution is a potent recipe for driving deep client engagement and strong, high value client relationships.

Learn from Advisers:

Want to know how other advisers are tackling this with their clients. Watch some of our Adviser testimonials

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