Thomas Hogg
By Thomas Hogg on November 21, 2022

Show your clients the value of their ESG investments

As COP27 approaches its climax and after a summer of record temperatures, interest in ESG investing has never been higher and this trend is set to keep on growing, according to an analysis by Deutsche Bank.

As focus on client outcomes also grows stronger, it has never been more important to prove the suitability of your recommended portfolio for your client, across all factors.

Often, conversations with clients on ESG can focus too much on the ESG breakdown itself rather than also including the wider context of the most suitable investment philosophy and principles.

With our new ESG Analysis feature, we get to the crux of what most clients want to know about their investments - “Am I doing more good than harm?” - while keeping the context of the wider evidence-based investment philosophy.

In a nutshell, it shows your client whether their ESG portfolio reaches the standards they expect.

Keep ESG conversations on track with your clients

And we keep the conversation with your client on track by not attempting to compare two ESG Risk Score numbers, between which there can often be very little difference, and instead focus on ensuring the portfolios being compared are as low as your client expects them to be.

Here, you can set the ESG risk threshold for the equities in your client’s portfolio that you expect to be reached.

Too often, conversations can go off-track because you need to explain the difference between a 19 and 21 risk score rather than focusing on whether the portfolios are good enough. The risk scores we provide come from Morningstar and, by definition, include a degree of subjectivity to them, making such direct comparisons unhelpful.

Even so, clients will have questions about what the scores mean, how risk levels are characterised and what the UN Global Compact is, so we have a range of small popup windows which explain each of these in client-friendly language.

Easily compare ESG ranges to a standard investment strategy

And for those clients who are keen to drill down into our ESG ranges, we have that analysis too. When you click on ‘Timeline Portfolio ESG Breakdown’ from the sub-menu, you can see how our ESG ranges compare to a standard investment strategy on screening out inappropriate equities. This visualises clearly what a big difference our ESG ranges make:

With even more detail when you pick a specific area to focus on:

Our ESG Analysis tool works well with our Investment Analysis tool, to give you and your client a complete overview of the suitability of the set of investments you are proposing.

Watch our video to find out more…


The video above explains our new ESG Analysis feature. 

Published by Thomas Hogg November 21, 2022
Thomas Hogg