Aegon Adviser Attitudes Report 2021

Barriers to ESG integration 84% of the advisers we surveyed highlighted barriers to integrating ESG into their investment propositions. Regulators have already recognised what they term a ‘short-term results culture’ in finance and the difficulty in identifying genuinely green activities for investors to invest in. The FCA’s paper FS19/6 Climate Change and Green Finance 1 outlines the issues identified and sets out ways it intends to tackle issues such as ‘greenwashing’, through enhanced reporting requirements, disclosure rules and consumer protection measures. Some of the issues highlighted in our results indicate a lack, or poor quality, of information available, while others emphasise a lack of available products. 38% of advisers said they found ESG research confusing. In an industry which loves its acronyms, ESG has introduced a whole raft of new abbreviations for summits, research, lobbyist organisations and even chemical terms, making it seem even less approachable to those who aren’t experts in the field. 24% said they found a lack of information available on ESG. This again points to a need for providers to improve not only the quality of educational material on the subject, but also to better report on the solutions they offer in terms that are clear and accessible to all. 1 Climate Change and Green Finance: summary of responses and next steps. Feedback to DP18/8. Feedback statement: FS19/6. Published October 2019. 84% of advisers cite barriers to integrating ESG into their investment proposition 42 Aegon adviser attitudes report 2021