There was a growing importance placed on incorporating sustainability in investment decision making, said Schroders, which suggested advisers were also receptive to the "mounting evidence of the impact of climate change".
Sustainability has become a mainstream term with advisers and their clients over the past few years and 90 per cent of advisers agreed that events over the past two years had reinforced the importance of stewardship and using an asset manager who actively engages with company management.
A considerable 83 per cent of advisers also indicated the past two years had increased their attention to the environmental, social and governance risks associated with investments, while 71 per cent reported they were preparing for possible changes in regulation, which may include them having to discuss suitability preferences with clients.
The government has set out a roadmap for a UK version of the EU's SFDR rules, which is expected to force advisers to raise ESG preferences with their clients.
Gillian Hepburn, intermediary solutions director at Schroders, said: "As financial advisers once again find themselves having to adapt to a rapidly changing investment landscape, the importance of ESG and stewardship as a means of mitigating against unforeseen risks has been thrown into sharp focus."
Meanwhile, more than half (53 per cent) of advisers told Schroders they were unsure about what impact the Financial Conduct Authority's consumer duty would have on their business.
Somewhat surprisingly, 17 per cent expected it to have a negative impact on their business. Advisers have previously told FTAdviser they thought the new rules would have little impact on firms which already run a client-centric business model.
The consumer duty is aimed at ensuring companies “put themselves in customers’ shoes” when communicating and designing products. It is expected to be introduced by April 2023.
carmen.reichman@ft.com
