Sustainable and Impact Investing May Be Worth $650 Billion
By Kymberly Levesque
Research released by the Calvert Foundation shows that a majority of financial advisors see sustainable investing as an opportunity to expand their business. Advisors surveyed would recommend sustainable investments to one-third of their clients and would divert 10 to 20 percent of portfolios to sustainable products. That could mean these advisors are willing to put as much as 2.5 percent of the assets under management toward sustainable and impact investments—a market potential of $650 billion.
Based on a survey of 1065 financial advisors, the “Gateways to Impact” report reflects the growing demand for sustainable, responsible, impact (SRI) investment opportunities. Increasingly, financial services firms and wealth managers are expanding their offerings in order to satisfy the needs of clients who wish to match their investments with their values.
Seventy-two percent of the financial advisors surveyed expressed some interest in recommending sustainable investments to their clients. Thirty-eight percent expressed strong interest in recommending sustainable investment to their clients.
The study identified several factors that will enable financial professionals to increasingly recommend sustainable investments to clients, including evidence of financial performance (54 percent), client demand (44 percent), and longer track records (39 percent).
Consistent with First Affirmative’s 25 years of focus on SRI, the survey’s findings support the notion that sustainability is not a fad. Instead, financial advisors are becoming more interested in the world of sustainable, responsible, impact investment opportunities.
Read more: “Sustainable Investing Could Be Worth $650 Billion,” The NonProfit Times, June 11, 2012
Posted: June 26, 2012