ESG has been called a new wealth investing paradigm, with increasing focus on bringing wealth managers up to speed.
As interest in ESG outpaces understanding of the sector, the Personal Investment Management & Financial Advice Association (PIMFA) has launched an ESG Academy for wealth managers.
Available from 28 September and free to members, the new CPD-accredited platform aims to equip advisors with the latest ESG knowledge and insights, PIMFA said.
ESG investments set new records in the second quarter, with roughly £3 billion flowing into UK ESG focused funds. In Europe, sustainable fund assets under management are predicted to account for over 50 per cent of total European fund assets by 2025.
Participants will learn how to recognise and meet clients’ demand for ESG, and clearly explain what qualifies as an ESG investment and what does not, PIMFA said. Advisors will also learn about the patchwork of frameworks governing ESG, and how to use available tools to identify suitable ESG investment paths. Users can do this at their own pace in their own time, with access from any device to a library of ESG content, the trade association said.
“There is an opportunity to be seized here both for investors and companies alike as new technologies are developed and as attitudes change, some of which have been accelerated by the COVID pandemic,” PIMFA’s chief executive, Liz Field, said.
MSCI’s head of EMEA Wealth Management, Steve Kowal, said the rise of ESG presents new responsibilities for wealth managers and the chance to "deepen client relationships." The ratings firm is among several from the industry which have helped PIMFA develop content.
Last week, this service reported that New York Life-owned Candriam had launched a new training programme focused on a company's ESG risk profile as part of its academy serving around 8,000 members.