Discretionary fund manager EQ Investors has launched a sustainability questionnaire to help advisers understand a client’s sustainability preferences.
EQ said the questionnaire aims to support advisers in exploring a client’s personal values, and provide a starting point for a detailed conversation around sustainability.
The questionnaire comprises eight statements, to which clients either answer ‘agree’ or ‘disagree’.
Statements include:
- ‘I would like to avoid investing in business activities that are harming people and planet. This goes further than minimum exclusions such as tobacco, weapons and gambling and would also exclude activities like fossil fuel and alcohol production.’
- ‘I would like to invest in companies across a broad spectrum of sectors, but need them to have a focus on managing their operational environmental impacts, their employees and strong governance.’
- ‘I am happy to invest in businesses that have high carbon emissions today, if there is a dedicated objective to reduce the carbon footprint of my investments through active engagement and stewardship.’
The eight statements that are posed to clients are mapped against three of EQ’s sustainable model portfolio strategies, as well as a traditional investment strategy that does not apply sustainability objectives.
In addition to the questionnaire, the DFM has launched an accompanying interpretation guide for advisers, as well as a short video on how to use the guide.
“We have long recognised that sustainable investing isn’t one size fits all,” said Sophie Kennedy, joint CEO of EQ Investors.
“However, it’s not always easy to identify a client’s specific sustainability preferences, and we have been asked by many of the adviser firms we partner with if we could develop a questionnaire to help with the conversation.”
EQ said its sustainability questionnaire is intended to be used alongside a broader advice process, which has already considered the risks, costs and complexity of a product that is being recommended to a client.
Chloe Cheung is a senior features writer at FTAdviser
