Financial adviser encourages peers to embrace sustainable investing for clients' benefit

Ahead of the ESG Summit 2023 (hosted by ifa’s sister brand, InvestorDaily) Amplify Wealth Management owner and financial adviser Tanya Carlson urged advisers to become involved in ESG investing by understanding the basics.

“I would recommend that they get started on advising clients on ESG investing instead of putting their head in their sand,” she said.

“I think the important thing to understand is that there is a lot to learn because ESG investing and concepts like greenwashing are complex. But don’t be afraid of that.

“It’s actually fun to learn more and understand some of these areas. But the important thing is to start.”

ESG investing will become a permanent fixture in portfolios, which underscores the value in advisers initiating these conversations, Ms Carlson said.

“The sooner advisers start the better, because I think clients will expect it in the future,” Ms Carlson pointed out.

“Advisers can’t just pick one or two funds they are already using that may have a green label. This isn’t the right approach for these sorts of clients.”

Moreover, advisers would want to be perceived as being able to have conversations around ESG investing, or be able to refer clients to a specialist if they do not feel confident themselves, she added.

Ms Carlson’s comments preceded her session at the ESG Summit 2023 in Sydney, where she will discuss how she made the internal shift to provide ESG investment advice, the key steps she took to seamlessly integrate the change in her practice, and how she shaped her initial conversations with clients.

Ms Carlson recommended a multi-pronged approach for advisers venturing into ESG investment advice, including approaching research houses, fund managers, product providers, and business development managers (BDM) for general information and research material on specific investments.

She said she also joined the Ethical Advisers’ Co-op, through which she had conversations with a passionate group of people and enhanced her understanding.

Ms Carlson said she prompts discussions around ESG investing with all of her clients and will delve further if they express interest.

To align a client’s values with their money, Ms Carlson said she applies a negative screening process for some ESG investments, and invests in impact funds for those who want to have a positive impact.

For clients aspiring to take a more active position by providing proxy votes or joining campaigns, Ms Carlson said she refers them to a specialist who can support their goals.

“But like all advisers, we’re forever changing the script according to the needs of our clients,” she highlighted.

“I ask clients better questions around what motivates them and what they are interested in. I then help them understand what options are available to them because there are lots of options out there.”

Clients have been receptive to these conversations, Ms Carlson said, and are eager to learn how they could become involved.

“The challenge is for advisers to make it easy for them to understand ESG and ethical investing, and develop their knowledge and skills, in the same way that we would educate clients on other types of investments,” she concluded.

To hear more from Tanya Carlson in Sydney about her approach to providing ESG investment advice and how you can follow her footsteps, come along to the InvestorDaily ESG Summit 2023.

It will be held on 23 March at Aerial UTS Function Centre, Sydney and 29 March at Grand Hyatt, Melbourne.

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