'Advisers take note' RIAA welcome sustainable finance roadmap

RIAA CEO Simon O’Connor breaks down what the Sustainable Finance Forum’s roadmap action plan means for advisers.

Wednesday, November 4th 2020, 6:00AM

by Daniel Smith

The eagerly awaited roadmap will outline the direction that financial services will have to move in to achieve a sustainable and successful economy.

The roadmap has been in the works for 23 months and is the result of the latest research in investment management and client behaviour.

RIAA CEO, Simon O’Connor told Good Returns that “advisers need to take note. When the roadmap starts to roll out it will be part of broader changes in the financial services sector around disclosures, around climate change and broader ESG risk.”

O’Connor says that “for an adviser acting between the client and the companies, they can expect to see a whole lot more consistency and disclosure around how their fund managers and KiwiSaver providers talk about sustainability in investment. In the listed company space they can expect to see stronger and better disclosures as well.

“The long and the short of this is that these changes should enhance an adviser's ability to provide solutions and products that match their clients needs and can much more simply differentiate between different products in the marketplace as to how they are considering sustainability and ESG issues.”

The roadmap contributes to the consumer research released last week that showed that 78% of New Zealanders believe that ethical or responsible investments perform better in the long term, and 58% would consider switching their investments to another provider if their current fund was inconsistent with their values.

O'Connor said that “our new consumer research shows very clearly that the vast majority of New Zealanders expect that the financial services sector – through their savings and investments – drive capital to not only avoid harmful activities, but to support a cleaner, fairer and more prosperous New Zealand”.

Tags: ESG RIAA Sustainability