abrdn has launched a new fully integrated ESG Hub on its wrap platform to enable advisers to plan, review and analyse client portfolios, as new research from the business shows advisers struggle to identify suitable ESG-aligned options for their clients, even as many plan to expand their sustainable and responsible investment capabilities.
Advisers polled by abrdn said that clearly identifying assets or funds that align with their clients’ goals was one of the biggest challenges they faced when it came to supporting clients with responsible and sustainable investing (42%), along with ensuring their own colleagues understood ESG terminology (44%). A third also report challenges with reporting on ESG performance (33%).
This comes as more than two-fifths of firms (43%) said they had plans to offer ESG analysis services to all clients in the future, and as more than two in five (41%) continue to review their compliance processes in line with the roll-out of the FCA’s Sustainability Disclosure Requirements (SDRs).
abrdn’s new tool has been developed with advisers to support their existing advice process and aid client conversations on specific environmental, social and governance (ESG) themes. It is fully integrated with existing client information to assist advisers with identifying and recording client’s individual ESG preferences.
The ESG Hub data is sourced from third-party industry providers including Morningstar, Trucost MSCI and Sustainalytics. It allows advisers to evaluate their client’s ESG preferences against their live holdings on Wrap and generate personalised ESG reports.
Key features include;
- Ability to select, edit and save clients’ individual ESG preferences.
- Access to ESG data at portfolio or sub account level.
- Visibility of ESG data relating to the underlying companies that make up client’s investments.
- Information on relevant Sustainability Disclosure Requirement (SDR) labels to help support advisers with the latest regulatory disclosure requirements.
- Ability to generate personalised client ESG reports showing how a client’s Wrap investments align with their ESG preferences.
- Client holdings within a managed portfolio at either portfolio summary or a more detailed view at fund level.
Jonny Black, chief commercial and strategy officer at abrdn, said: “While advisers plan to deepen the responsible and sustainable investment support they offer their clients, real barriers remain, including when it comes to easily identifying suitable assets and all-important client reporting.
“This solution is designed to help tackle these challenges that they’re sharing with us head on, and in doing so support better outcomes for clients, as well as unlocking efficiencies for advisers themselves and supporting their compliance efforts.
“It’s another example of how we’re more than just a platform – we’re a broad business helping to solve a variety of our customers’ needs.”
