The world has put its values on display. There are countless outlets for those who want to engage around their passions, and it is becoming more common to incorporate values into our day-to-day lives. Financial advisors, however, have proven reluctant to join the conversation, despite overwhelming evidence that the volume is increasing.

The numbers tell the story of a culture ready to lead with their values:

Consumer preference: 81 percent of consumers feel strongly that companies should help improve the environment.

Employee demand: 83 percent of millennials and 80 percent of Gen Z believe that business success should be measured beyond financial performance.

Management evolution: businesses are responding. Among those employees who feel they are on a successful track, 75 percent report that their company exhibits a strong sense of purpose that resonates with their personal values.

The logical next step is for people to also incorporate their values into investment decisions. But financial advisors aren’t walking that walk, and they continue to shy away from the client values discussion. What separates them from the momentum shared by so many other industries and communities?

Communications and education. The lack of a simple message and clear path to action for clients is standing in the way of evolution.

Three Keys To Client Values

There are any number of approaches to aligning values and investments, and certainly advisors have a fiduciary obligation to know which sustainable investing strategies are the right fit for their clients. Whether screening in specific investments that support a client’s goals or excluding industries a client opposes, the tools and analytics now exist to build portfolios that can outperform, or at the very least provide competitive returns.

Investors understand this—which is in part why one in four dollars is invested in sustainable, responsible and impact investing. That accounts for $12.0 trillion in total assets under management in the United States and a 38 percent increase over 2016.

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