Capturing the demand
There’s no doubt that COVID-19 has given responsible investing a sharper and more calculated focus. 82% of advisers have reported an uptick in interest from clients on ESG issues and responsible investing in general6.
Regulatory rules and requirements coming into play at the end of 2021 will effectively force advisers to discuss ESG issues with their clients whether they want to or not. Our research tells us that the demand is very real and that it is growing.
People don't naturally connect their savings or their pensions with the ability to make a social or environmental impact but this is an area which is moving at pace and bringing this impact to life for clients can help advisers get ahead of the curve. As the demand awakens, this could turn out to be the pension engagement tipping point we’ve all been waiting for.
Sources:
1 ‘The Importance of ESG and corporate sustainability in a time of unprecedented challenge’, EY (2020)
2 Royal London (2020)
3 Federated Hermes (2020)
4 Hargreaves Lansdown (2019)
5 ’The power of emotions’, Franklin Templeton (2019)
6 FE FundInfo (2020)
