Given the clear and overwhelming demand for responsible investments that already exists, it may seem a little surprising that, in Australia, and around the world, there has been a historical disconnect between consumer demand for responsible investment options, and adviser offerings.

In a 2020 study of US financial advisers by Cerulli Associates, 58% of respondents said a lack of investor demand was a significant factor preventing their adoption of ESG strategies, and an additional 14% reported that it was a moderate factor²³.

A 2021 survey of Australian advisers also uncovered a less than universal enthusiasm for ESG strategies²⁴. Close to 40% of advisers surveyed indicated they had seen no increase in client demand for ESG investment options over the previous 3 to 5 years, while nearly a quarter said they didn’t expect to see an increase in client uptake over the coming 3-5 years. Around 80% of those surveyed said 10% of their clients or less were invested in ESG strategies.

Retail investor research conducted for Climate KIC Australia²⁵ identified a perception that advisers were ‘generally misinformed about sustainable finance or were part of the problem in perpetuating myths about uncertainty related to green fund’.