2 of 5 Advisors Say They Already Offer "Impact Investing" — Another 15% Plan To

Written by: First Affirmative | First Affirmative Financial Network “Impact investing” is a hot topic in the financial world today. Already, 39% of surveyed financial professionals say they are offering such choices to clients and another 15% plan to do so in the near future.Available online , the First Affirmative survey is based on 508 responses to an online survey of financial professionals not usually identified as SRI practitioners. Key survey findings include the following: Response

  • Nearly two thirds of surveyed financial advisors claim to be “very aware” or “somewhat aware” of impact investing (see graph to the right).
  • However, one out of five could not define “impact investing” and there was little consensus among the rest on specific definitions, with more than a third (38%) opting for “all of the above” on impact investing’s definition. One common definition of “impact investing” is that it seeks to achieve environmental or social change while generating a return for an investor.
  • Over half (51%) of surveyed financial advisors say “impact investing likely will become a bigger focus for more advisors in the next five years.” An even greater percentage—73%—see impact investing becoming a “much bigger” or “somewhat bigger” part of their practice in the same time period.
  • Why offer impact investing? Client demand at 58%.
  • What is the Number 1 factor that surveyed financial advisors say keeps them from getting involved in impact investing? “Lack of information/familiarity” at 77%.
  • Commenting on the survey findings, First Affirmative Financial Network President, Steve Schueth, said: “The survey’s findings show that the financial world is adjusting quickly to accommodate retail investor demand for impact investing. It is encouraging to see so many so-called ‘mainstream’ financial advisors embrace the notion that their clients can do well and do good at the same time. Only a few years ago investing for impact was the exclusive province of investment professionals who specialized in SRI—Sustainable, Responsible, Impact investing. The reason for this encouraging trend is pretty clear: A new generation of Millennials, women, and college-educated investors are demanding positively impactful investment strategies.” (see graph below)Millenials