Responsible Investment Advice Integration
Advice on suitability and sustainability
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Capabilities
Media type
Themes
Regions
The integration of sustainability preferences into the advice suitability process and product governance will have a significant impact on fund flows into responsible investment solutions going forward. UK intermediary businesses are needing to implement these changes into their advice models and become ‘business ready’ to meet the regulators expectations, and client demand. This is where we can help you address the following areas:
Responsible investing – market backdrop of regulatory change, client demand and responsible investment choices
With the likes of David Attenborough and Greta Thunberg – responsible investing is moving to the mainstream. Not just through airtime and activism, but it is slowly graduating into the corporate world.
This in hand, develops the necessity and demand from clients for responsible investment fund ranges and solutions. With top down drivers pushing for sustainable financial growth, it brings with it a plethora of new rules and regulations.
Our detailed Responsible Investment Advice Integration guide is here to provide you with further support and guidance on these regulatory changes such as MiFID II and PROD, as well as map out the spectrum of responsible investment approaches and choices available.
Philanthropy
Donation/ support of good causes.
Traditional Investing
Limited or no regard for ESG practices.
Thematic
An investment style that can be found within a variety of investment approaches, focused around different theme(s) such as climate change, clean water, renewable technologies etc.
ESG Integration
The systematic and explicit inclusion of material environmental, social and governance (ESG) factors into investment analysis and investment decisions.
Sustainability Focus
Approaches that select investments on the basis of leadership in environmental, social and governance aspects.
Spectrum of responsible
investment approaches
Impact Investing
Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.
Exclusionary screening
Prohibitions of investments along certain themes, activities, or industries.
Choices summary
Markets have shifted with sustainable product options now outnumbering other styles. There’s been a shift from negative screening (exclusions) on ethical grounds to a focus on positive screening – ‘doing good/making a positive impact’.
The majority of options are still single sector funds or DFM models rather than risk managed multi-asset solutions with a relatively low-level of options currently available.
Funds and portfolios are increasingly launching ESG screened products, many of which are passive, that don’t contain the stewardship and engagement element that helps evidence impact and influence.
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CT proposition – credentials, solutions and support
At Columbia Threadneedle, we have always believed that responsible investing is just good investing. Over 35 years ago, we launched Europe’s first ethically screened fund, and ever since, we have been building our capability and launching innovative funds and solutions for clients.
As investors, our responsibility does not end when an investment is made. We are active owners, using considered engagement and thoughtful voting to drive positive change, reduce risk and enhance long term performance. Click the cards below to find out more.
Risk-targeted fund range
Our Responsible funds
Engagement service
Implementation considerations
To support you, we outline a potential roadmap with milestones to fully integrate responsible investing into an advice process model. It highlights support Columbia Threadneedle can provide in areas such as adviser education, marketing toolkit and client communications.
Marketing toolkit
This decade is vital for achieving the ambition of the UN Sustainable Development Goals (SDGs), and ultimately creating a better future for us all. Investors have a key role to play – it’s not enough to say we intend to support sustainable development, we need to monitor and measure the impact our investments have. That means working with our investee companies to encourage better disclosure of impact metrics.
We publish impact reports annually for our growing range of sustainability strategies, using the SDGs as a key reference point to measure the impact of our investment decisions.
For more information on our key marketing materials, click here.
Projections
Market trends, indicate a rapid change in investor and adviser sentiment towards sustainable investing. With regulatory changes planned and the environmentally focused backdrop – the growth in RI asset flows is set to significantly rise.
Adviser Edge
Access professional support from Columbia Threadneedle focusing on financial planning, investment and practice management. Earn structured CPD to enhance your client outcomes.
Conclusions
The Responsible Investment Advice Integration guide outlines the potential responsible investment advice integration milestones and support Columbia Threadneedle can provide.
Responsible Investment
Advice Integration
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Adviser Edge
Insight to enhance you client outcomes
Technical education and business development insights on financial planning, investment and practice management.
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