In the dynamic world of financial advice, the integration of environmental, social, and governance (ESG) principles has become non-negotiable. Yet, the sheer volume of information on ESG can overwhelm advice teams. What if becoming versed in ESG was as simple as dedicating 15 minutes every two weeks?

In this article, we unveil an innovative approach, inspired by Alexandra Brown's insights from the Ensombl podcast, offering your advice team a swift and comprehensive understanding of ESG. Let's embark on a journey of microlearning that transforms your team's ESG literacy.

A brief overview of the ESG landscape

Understanding ESG is not merely a checkbox; it's a journey through climate change, human rights, diversity, animal welfare, environmental destruction, risk, return, portfolio construction, and more. Building an understanding of ESG empowers your advice team to not only advise clients on aligning investments with values but also identify risks and opportunities within portfolios. The 15-minute approach in this article will help you and your team dip a toe in the water, and prepare you for diving into the complexities of the ESG landscape.

The imperative of ESG in financial advice

ESG is a fundamental factor in financial advice. Integrating ESG factors into client discussions and investment strategies not only empowers clients to make environmentally and socially aligned decisions, but may also contribute to long-term positive outcomes for both clients and the broader community. Aligning financial goals with ethical and sustainability values is not just about ticking things off; it’s a commitment to holistic wealth management with global implications. Not to mention, it’s a great way to boost your client proposition.

Evaluating investments through an ESG lens

When evaluating investments through an ESG lens, it's crucial for advisers to cut through the noise and discern authentic ESG and sustainable investment approaches from mere greenwashing. This requires a nuanced understanding of how companies and funds incorporate environmental, social, and governance considerations into their business and investment practices. One potential pitfall is the risk of surface-level ESG initiatives that lack meaningful impact. To avoid this, advisers must look beyond glossy sustainability reports and scrutinise the depth and authenticity of ESG commitments. It’s time for your team to gather the insights needed to evaluate and make informed decisions aligned with ESG principles and client values.

Tools and resources for ESG education

Ethical Invest Group delivers the leading adviser training on ESG and sustainable investment advice, but today the spotlight is on Altiorem; an innovative online library providing valuable resources for ESG and sustainable finance education and advocacy. With Altiorem, membership is free, and your advice team will find digestible resources that offer both foundational knowledge and practical insights.

1. Search by key terms and popular tags such as ‘ESG’, ‘sustainable investor’, and ‘responsible investment’.
2. Click through the tabs on the homepage search box for ‘Things to learn’, ‘Actions to take’, and over 70 popular ESG issues.
3. Head to the Library tab in the top navigation bar, and search by the Sustainable Development Goals, sector, and asset class.

Explore Altiorem's library for articles, expert guides (new), and a curated selection of ESG resources to fast-track your advice team’s knowledge base.

Quick tips for learning ESG in 15 minutes

For time-strapped advisers, these action steps will help your advice team grasp ESG essentials efficiently. Every two weeks, you will progress your understanding of core concepts, explore key ESG metrics, and delve into real-world case studies highlighting successful ESG strategies. These quick tips ensure effective learning in just 15 minutes, fostering informed discussions within your advice team.

1. Head to Altiorem, your curated database of quality ESG information and insights.
2. Click on the Library link in the top navigation bar and make your way to the Finance Relevance tab.
3. In Finance Relevance, click on Financial Advice.
4. From the search results, allocate a research paper to each team member (you will need to be a member to view the summary and key insights, but it is free!).
5. Arrange a schedule whereby each member presents on their paper in two-week intervals.
6. In each meeting, encourage your advice team to have a 15 minute chat about the content.

It’s that simple to start learning ESG in your advice practice! Want a 12-week game plan to upskill your advice team in sustainable finance? Read on.

Alexandra Brown's top 6 resources for microlearning

At Ethical Invest Group we love making it even easier for you to learn ESG. Inspired by Alexandra Brown's insights from the Ensombl podcast, we present six resources from the Altiorem library. Each resource, when explored for just 15 minutes every two weeks, offers a deep dive into ESG and sustainable investment, and actionable steps for your advice team's microlearning journey.

1. Global investor study: The rise of the sustainable investor discusses the rising interest towards sustainable investing and will help make the case for adding this skill to your team.
2. The value of responsible investment explores the moral, financial and economic justification for responsible investment and the academic evidence underpinning the material impact of ESG factors.
3. The race of our lives revisited offers a wide-ranging analysis of interconnected environmental crises, explores solutions and makes recommendations for investors. If your team is concerned about fossil fuel divestment strategies, this is the paper for you.
4. Greenwashing risks in asset management: Staying one step ahead will help you and your team recognise misleading statements associated with sustainable investment products, and the changing regulatory landscape tasked with managing this challenging area.
5. A legal framework for impact: Sustainability impact in investor decision-making may spark some interesting discussions with your team around whether financial returns should be the only goal of investing.
6. Bankrolling extinction: The banking sector's role in the global biodiversity crisis explores the contribution of the banking sector to the biodiversity crisis and the destruction of nature. With nature risk becoming a hot topic globally, this report will move your team’s discussion from direct corporate activities to the responsibility of financial institutions.

Consider this your roadmap for the next three months, to easily enhance your advice team's ESG expertise.

Conclusion: Empowering your advice team with ESG

Financial advisers need to understand the importance of incorporating ESG criteria into investment strategies. ESG investing is becoming increasingly popular, and advisers need to upskill and learn about sustainable investment options to provide client value and improve their client proposition.

There are opportunities for financial advisers in the ESG market. Advisers can differentiate themselves by offering ESG and responsible investing options and incorporating ESG criteria into their investment strategies.

Education and training on ESG investing is crucial for financial advisers. Professional development, such as an annual knowledge plan, can help advisers stay up to date on ESG investing trends and incorporate ESG criteria into their investment strategies.

We emphasise the transformative potential of incorporating ESG principles into your advice team's approach. By embracing microlearning and leveraging resources like Altiorem, your advice team can navigate the complexities of sustainable investing. Being informed and educated will empower your team to engage deeply with clients, position your firm as a thought leader, and make a lasting impact on both your clients and the finance industry.

Bonus: Exclusive podcast insights

Don't miss Alexandra Brown's guest appearance on the Ensombl podcast. Explore her advice on using the Altiorem library for microlearning, providing a unique perspective on enhancing your advice team's ESG knowledge. Listen to the podcast here and share your thoughts on social media using the hashtag #ESG15Minutes and let us know how this microlearning approach is transforming your ESG strategy.

Embark on a journey of ESG mastery in just 15 minutes — transforming your advice team's approach and setting the stage for a sustainable and impactful future.

Disclaimer:
This information is issued by Ethical Invest Group (EIG) (ABN 29 238 432 149) in relation to the trend toward sustainability in financial advice.
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