• Based on a recent FUSE Research/WealthManagement.com survey of 347 advisors, greenwashing tops the list of overall advisor concerns about ESG investing, while performance ranks second.
• The survey revealed disparities by advisor demographic. For example, by channel, regional broker/dealers and bank trust advisors are more concerned about greenwashing while wirehouse advisors and RIAs are more focused on lower returns.
• In May, the SEC began to codify regulations surrounding ESG claims, issuing two rule changes that would reduce fund managers’ ability to make false or misleading claims. It also created an ESG enforcement task force to identify violations in disclosure and compliance related to ESG funds.
• The focus on transparency and truth in labeling will be an important factor in overcoming advisors’ lingering objections to ESG.

Advisors’ Biggest Concerns About ESG Investing

Note: Percentages represent advisor response of “Major concern”

Source: FUSE Research Network, WealthManagement.com