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nance Disclosures Regulation ( SFDR ). Advisers can then use this to establish client suitability preferences . However , in the UK , the regulator has unveiled plans for Sustainability Disclosure Requirements ( SDR ) which also aims to introduce labels for sustainable investment products . The consultation for this will take place throughout 2022 and will hopefully deliver further clarity for advisers and investors . However , at Schroders , we are always happy to help with training and education programmes for advisers and aim to continue to deliver this throughout 2022 . If we go back to the original question of whether sustainability is becoming mainstream , perhaps the best evidence that it is comes from the following .
5 . ESG is firmly embedded in the investment selection process 80 % of financial advisers now specifically consider ESG factors as part of their fund selection process . This has risen significantly from 43 % in 2019 and represents a significant shift for financial advisers . While sustainability may not yet be considered to have fully entered the mainstream , it looks like it may well be before too long .
Percentage of advisers specifically considering ESG factors as part of their fund selection process
Source : Schroders 2021 UK Financial Adviser Annual Survey
75 % of advisers reported an increase in the number of clients asking for sustainable investment options during 2021 . As a provider of sustainable investment solutions , Schroders also observed this increase . For example , the proportion of flows into the Schroder Sustainable Model Portfolios , as a percentage of total flows into all models , continued to increase month on month .
4 . Education – could we do better ? Confidence in talking to clients about sustainable investing varies amongst financial advisers with 51 % still rating this as ‘ middling ’ or below . There is an argument that this could be hampered by the lack of terminology consistency and the requirement for alignment of labelling of sustainable products . There is an EU taxonomy which asset managers use to report on the sustainability of their products as per the Sustainable Fi-
For more information on the Schroder Sustainable Model Portfolios and Schroder Investment Solutions , simply visit schroders . com / investment-solutions , contact your usual Schroders representative or call our Business Development Desk on 0207 658 3894 .
Important information
Marketing material for professional intermediaries only , not for onward distribution . This information is a marketing communication . The material is not intended to provide , and should not be relied on for , accounting , legal or tax advice , or investment recommendations . This information is a marketing communication . Past performance is not a guide to future performance and may not be repeated . The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested . Exchange rate changes may cause the value of investments to fall as well as rise . The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications , strategies or funds . Insofar as liability under relevant laws cannot be excluded , no Schroders entity accepts any liability for any error or omission in this material or for any resulting loss or damage ( whether direct , indirect , consequential or otherwise ). Schroder Investment Solutions is the trading name for the Schroder Sustainable Portfolios . These Model Portfolios are provided by Schroder & Co Ltd . Registered office at 1 London Wall Place , London EC2Y 5AU . Registered number 2280926 England . Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority . Issued in January 2022 by Schroder & Co . Limited . UK003908 .
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