Amid a growing demand for sustainable investing among consumers, Ms Brown has shared five ways she believes advisers can enhance their knowledge base. This, she said, can help them improve their confidence when discussing ESG and values with their clients.
“The first way, I would say, is to speak to other advisers in this space who are already doing it,” Ms Brown said.
“I am a member of the Ethical Advisers Co-op and I think that one of their strengths is the fact that they can speak to each other about this, they can ask each other questions, if someone’s doing something, using a particular questionnaire or product, they can ask how they’re doing it, what issues are they experiencing?”
Emphasising the importance of connecting with a network of advisers already experienced in the field, she suggested that joining the co-op is a great initial step.
“Instead of holding this tight to their chests, they want to help the industry grow. They want to help you grow.”
Next on her list is a conversation with product providers and BDMs.
“Ask them about their products, they often have educational collateral too which they’d be happy to share.
“Attend adviser briefings by ESG and sustainable investment providers, that’s where you can really get some deep discussion, and ask any questions. You are the person between your clients and these investment products, you have such an important role to play in a two-way discussion,” Ms Brown said.
She explained that the role of the adviser is integral in shaping the industry and added that speaking on behalf of clients to influence and improve the available products is also key.
“You’re not only speaking to your clients, finding out what they want, and then going to the product provider and see if it matches, but you’re also leading and advocating for your clients, going to product providers and saying, look, your product isn’t offering this but my clients are asking for it.”
Moreover, Ms Brown suggested advisers visit Altiorem, a sustainable finance library.
“I am co-founder of Altiorem and head of research. Altiorem is Latin for ‘higher’ as our aim is to lift the finance industry higher. We do this by providing summaries and key insights of leading ESG and sustainable finance research. Head to the ESG tab in the search box on the homepage, or discover ‘things to learn’ and ‘actions to take’. We currently have over 270 reports categorised for your learning,” she said.
Additionally, she highlighted organisations that have a multitude of resources and information for advisers.
“The Responsible Investment Association of Australasia (RIAA) has wonderful adviser resources. They have adviser guides, a Responsible Returns tool to find responsible investment products, and you can even become a Certified Responsible Investment Adviser to stand out. I recommend you check them out.”
The Ethical Advisers Co-op, Ms Brown noted, also offers its Leaf Ratings system, which provides advisers with initial research on various ethical and sustainable funds available in the market. The system rates the funds based on their ethical standing for the average ethical client, as evaluated by co-op advisers.
“It’s a really great starting point and you can get a feel for the key things to look out for when looking under the hood of investment funds and super — the holdings, engagement, voting, and their investment process, so I think it’s a really good place to start.”
