Episode 07: How well are financial advisors serving client sustainability needs?

Sustainability in Motion Podcast – Episode 7: How well are financial advisors serving client sustainability needs?

Hosts:

• Matt Orsagh, Chief Content Officer at ED4S
• Maria Maisuradze, CEO of ED4S
• Guest: Stephen Kibsey, Analyst, Portfolio Manager, and Lecturer

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Episode Overview:
This episode dives into ED4S’s latest report from a “secret shopper” campaign, evaluating how well financial advisers across Canada handle client interest in sustainable investing. ED4S engaged financial advisers from various firms to understand their readiness to meet clients’ ESG and sustainability goals. Joined by secret shopper Stephen Kibsey, the discussion unpacks the findings, challenges, and potential solutions to improve sustainable investing advice.

Key Takeaways:

1. Background and Motivation

   • Maria Maisuradze shares her experience with financial advisers who were dismissive of sustainable investment inquiries, which inspired the secret shopper initiative. Since Canada’s regulations now require ESG factors to be part of the "Know Your Client" process, this study seeks to understand if advisers are integrating these requirements effectively.

2. Study Findings

   • Less than 25% of advisers mentioned ESG or sustainability without prompting, even though surveys indicate strong client demand for these considerations. Once prompted, about 67% of advisers addressed ESG topics, yet only half demonstrated a good understanding of various ESG approaches.

3. Challenges for Advisers

   • High turnover, lack of formalized training, and a disconnect between personal interest and corporate priorities hinder advisers’ ability to fully serve clients seeking ESG investment options. Even advisers with over 10 hours of sustainability training sometimes struggled to effectively guide clients.

4. Importance of Training and Incentives

   • Both Stephen and Maria stress the need for better ESG training and communication. Maria points out that the complexity of fund sheets and inconsistent ESG labeling adds confusion. Additionally, Stephen highlights that financial institutions should invest in ongoing, practical education and tools for advisers.

5. Cultural Shift in Financial Institutions

   • To truly embed sustainability, companies need support from top leadership. A culture that values ESG, starting from the CEO, will drive meaningful change across financial services, aligning firms with long-term sustainability goals.

Conclusion:
This secret shopper report highlights a clear gap between client demand for sustainable investing and the financial industry’s ability to deliver. Better training, incentives, and alignment from the top down can bridge this gap, ensuring advisers are prepared to meet the growing interest in ESG investing.

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Download the report: https://www.ed4s.org/reports

 

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To learn more about ED4S' leadership in ESG training and sustainable solutions, visit our website: https://www.ed4s.org

 

 

For any inquiries, suggestions, or feedback on the "Sustainability in Motion" podcast, feel free to contact us at: [email protected]

 

 

About ED4S:

At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment.