"Talking through a client’s sustainability preferences can be an excellent way to get to know a client – some will trust that their investments are managed to an acceptable ESG standard but others will hold much stronger views, and these are best established at the outset of a relationship."
Tailor the discussion
As with any client conversation it is important to tailor the discussion to the individual’s knowledge and experience but this is not necessarily determined by age
Scott Gallagher, director at Rowley Turton Private Wealth, says: “Many mature investors are interested in exploring it and typically warm to the idea once they realise that it no longer necessarily needs to be a compromise between ethics and investment success.
“There still seems to be a mis-match between, on the one hand, the industry press I read which emphasises more and more the value and range of ESG options and, on the other hand, interest expressed by clients.
“In any event, the young typically have less money and so by definition have less impact on investment direction. I think that as that demographic ages it will become more and more important – although always with the caveat that, for most, investment returns come first and ethical considerations second.”
Ms Harle says while uncertainty remains on the regulatory environment for financial advice and ESG, it is probably best to start from the assumption that this is an interest from investors that is going nowhere, with demand expected to increase.
“But for now, it is important to have the conversation with clients of all ages,” Ms Harle says.
“Many people struggle to understand investments so initiating the conversation about ESG and explaining it in simple terms will allow them to make the decision that is right for them.
"Advisers can get incredibly close to a client and really understand them, so don’t be afraid to use your intuition and discuss things you think they may be interested in from a responsible investment perspective.
"Presenting things simply and in ways they can understand is going to be crucial. Having some real world examples will allow them to envisage the change they can make with their investments and help strengthen that bond they have with their money, and ultimately their adviser. Using the softer skills are vital, as no doubt clients will want to feel understood by their adviser and this is the perfect opportunity to illustrate that.”
Ms Birtwistle says: “There is definitely an element of emotional intelligence required when having sensitive family conversations but we talk with all family members with respect and patience.
