This week the team at Hope Consulting released a new report “Gateways to Impact: Accessing the $650 billion market potential for sustainable investment”. The report, based on a nationwide survey of 1,065 financial advisors, found that 72% of financial advisors show interest in sustainable investing and 60% of advisors see sustainable investing as an opportunity to expand their practice.
The full report covers four topics about financial advisors and sustainable investing: their interest in sustainable investing, their barriers to recommending sustainable investments, their preferred positioning of sustainable investments, and the market potential for sustainable investment to be incorporated into client portfolios.
The report found that financial advisors would recommend sustainable investments to one-third of their clients and would allocate 10-20% of those portfolios to sustainable investments. This means the market potential for sustainable investments is $650 billion, based on U.S. advisors placing 2.5% of their assets under management (AUM) towards these investments.
WHY INVEST SUSTAINABLY?
Sustainable investing appeals to financial advisors for many reasons. They see sustainable investing as an opportunity to stay ahead of the curve, differentiate themselves from competition, and meet the needs of their clients. Despite their growing interest, many financial advisors indicated that they are still not fully comfortable recommending sustainable investments because they do not understand the market, the products, or the balance of financial versus sustainable returns.
MISSION MARKETS ROLE:
At Mission Markets we see our role as bridging these gaps. We provide financial advisors interested in sustainable investing a marketplace to advertise their specialized services and gain new clientele, while simultaneously educating the advisors about the market and allowing them to discover sustainable investment opportunities.
The Gateways to Impact report confirms that interest in sustainable investments is rising, and it also reiterates our mission to create an impact and sustainability marketplace where all stakeholders, whether they are financial advisors, sustainable businesses, financial institutions or individuals can connect, learn and discover more about impact investing and sustainable investment opportunities.
Mission Markets CEO and Founder Michael Van Patten contributed to the report, which was also supported by The Rockefeller Foundation, Calvert Foundation, Deutsche Bank, Envestnet and Veris Wealth Partners. To read the full report click here.
– Eleanor Horowitz, Associate, Mission Markets Inc.