More than half of financial advisors may be offering their clients socially responsible investments in the near future, according to a survey released Wednesday by First Affirmative Financial Network.
According to the survey, 39 percent of financial professionals say they are offering SRI choices to clients now and another 15 percent plan to do so in the near future. The survey included 508 financial advisors.
Thirty-five percent of advisors say they are very aware of impact investing and another 29 percent say they are somewhat aware. However, one out of five could not define impact investing, and there was little consensus among the rest on a specific definition, the survey says.
A large majority (73 percent) said impact investing will make up a larger part of their practices in the next five years. The advisors said clients are beginning to demand impact investing choices, especially clients who are millennial and female and those holding college degrees. But a lack of information, mainly, is holding back many advisors, the survey says.
But, “the survey’s findings show that the financial world is adjusting quickly to accommodate retail investor demand for impact investing,” says Steve Schueth, First Affirmative’s president. “It is encouraging to see so many so-called ‘mainstream’ financial advisors embrace the notion that their clients can do well and do good at the same time. Only a few years ago, investing for impact was the exclusive province of investment professionals who specialized in SRI—sustainable, responsible, impact investing.”