There are several research rating houses and tools available to advisers to use to support the recommendation of investment products that suit a client’s values and objectives. Many advisers in this space recommend using the RIAA reports, LEAF ratings system and the ETHOS online tool when researching options and making recommendations. As impact investing is a personal and tailored investment approach, it requires time to ensure the appropriate due diligence is completed before finding the appropriate match for a client’s objectives.
Reporting on the impact is a necessity. It is vital to communicate with your clients what is being done and how their money is being invested.
Reporting on the achievement of values and goals, both financial and non-financial, is one of the most valuable deliverables advisers have to keep their clients engaged on their impact journey.
Depending on how you have implemented the solution for your clients, this could be reporting on actual tangible metrics such as greenhouse gas emissions or this could be providing a metrics-based assessment. Your clients must understand that metrics and ratings are subjective and a reflection of the provider’s interpretation of standards, etc.
Integral to this is also regular communication to clients through the sharing of stories. Stories are what make the impact tangible and real to clients. When the impact measured is clear and easily identifiable, the sharing of stories on what is being achieved becomes a valuable tool for advisers, i.e. lives saved or quality of life improvements that a healthcare impact strategy has delivered.