“Investors can find unprecedented investment opportunities through investing sustainably and it is mission critical for tackling the profound environmental and social challenges facing humanity.” Dr Ben Caldecott, Founding Director, Oxford Sustainable Finance Group, University of Oxford

Ahead of the UN Climate Change Conference (COP26), Dynamic Planner has created a white paper style Sustainability Discussion Guide for financial advisers to use with their clients. The foreword has been written by Dr Ben Caldecott, founding Director of the Oxford Sustainable Finance Group at the University of Oxford.

The guide is launching in the week ahead of the 2021 UN Climate Change Conference (COP26) when consumer interest in sustainability is expected to peak. It aims to help the financial adviser community and their clients properly explore the topic of sustainable investing. With recent reports that the FCA and HM Treasury are exploring how to best introduce sustainability related requirements for advisers, Dynamic Planner’s Sustainability Guide will support advisers in more fully understanding investor preferences when it comes to sustainability and ultimately, suitability. The guide focuses on:

  • What is meant by sustainable investment from the perspective of the environment, broader society and how business activities can align for the common good;
  • Key sustainability risks, impact and investment opportunities to bring about change;
  • Challenges laid squarely at global financial markets and an explanation of their vital role, alongside important actions being taken by global regulators and government;
  • How psychological factors can influence preferences when it comes to sustainable investments;
  • An overview of investment solutions that can be aligned to unique sustainability preferences.

Dr Ben Caldecott, founding Director of the Oxford Sustainable Finance Group at the University of Oxford said: “The 2021 UN Climate Change Conference (COP26) is a key moment where governments, companies, and financial institutions will make bold commitments to tackle climate change. Financial firms representing tens of trillions in pounds of assets will be committing to align with the Paris Agreement and shift their portfolios accordingly. These and related developments will further accelerate existing trends in sustainability.

“The transition underway is also unleashing new technologies and business models, helping to drive innovation and productivity improvements in companies around the world, whether public or private. Finding these companies and helping them grow is essential, and also creates unprecedented investment opportunities for investors, especially those who increasingly want to align their investments with environmental and social sustainability. It is also mission critical for tackling the profound environmental and social challenges facing humanity.”

Ben Goss, CEO of Dynamic Planner said: “Consumer preference around how we can live our lives more sustainably is rapidly accelerating. With estimates of over £5trillion of wealth in the UK being passed down generations by the middle of the century, now more than ever we have the opportunity and responsibility to make investment sustainable. Not only does this make sense in continuing to build wealth, but also to deliver positive changes for the benefit of future generations.

“Financial advisers have a critical role to play in helping investors understand these trends and navigate the complexity and ensure that the asset managers they recommend are properly measuring and managing both climate and nature-related risks and impacts. This is hugely important as it will help ensure capital is channelled efficiently and productively to support the vital transition to global environmental sustainability.

“In a recent survey, 54% of advisers told us that they needed to increase their own knowledge around ESG and sustainable investing. Our guide is intended to inform the discussion and conversation between investor and adviser, written and presented in a way that investors can use to explore all of the issues around sustainability further.”

Earlier this year, Dynamic Planner launched its Sustainable Investing insight, powered by MSCIs global market leading ESG research. In May it launched the industry’s first psychometric sustainable investing questionnaire, combining thinking from schools of psychology and statistics to create a true process where a client’s ESG and sustainability preferences are accurately captured.

Dynamic Planner’s Sustainability Discussion Guide is available to download here