The Rise of ESG Investing

Aim: To discover how advisers are dealing with the increase in interest in, and demand for, responsible investing.

Outcome: Completion of this module will enable financial advisers (audience) to understand:

  • Why interest in responsible investing is increasing;
  • Which clients express the most interest in responsible investing and what is spurring that interest
  • How advisers can incorporate environmental, social, and governance (ESG) factors in their clients’ portfolios, and why; and
  • The perceived benefits of using ESG factors.

Abstract:

More investors are looking for ways to express their values through their investment portfolios. In an effort to generate competitive long-term financial returns while making a positive societal impact, investors have looked at the investment discipline that considers environmental, social and governance (ESG) criteria.

This paper seeks to discover how advisers are dealing with this change in investor behaviour and incorporate ESG factors in their clients’ portfolios while considering client demographics and the cause of interest in ESG criteria.

Although this paper is based on US information, a similar trend has commenced here in NZ.