Become an expert: 5 practical steps
Below are five steps to help you develop expertise in ethical investment.
1) Ask the ethical question
Adding the simple question "do you have any social, environmental or ethical requirements?" to your fact find could prevent you from losing many sales opportunities. Research has shown that many investors simply aren't aware they can invest ethically, and only reveal their concerns when prompted.
2) Do your homework
Clients interested in investing according to ethical criteria will have differing needs based on their personal concerns and priorities. One client may wish to avoid companies involved in animal testing, whereas another might be interested in funds whose focus is climate change. EIRIS' one-stop-shop consumer webiste on ethical money has a database of green and ethical funds which is available here.
3) Ask questions
Your clients may want to know how the fund(s) they choose to invest in select their stocks. They may also want to know which mechanisms are in place to ensure the ethical policy is adhered to. The Eurosif Transparency Guidelines for SRI Retail Funds aim to clarify the principles and processes of ethical funds. See www.eurosif.org
4) Keep up to date
There are numerous information sources on ethical investment. The EIRIS Green Money Blog provids regular news and updates to keep you abreast of latest developments.You couls also consider subscribing to EIRIS Twitter feed which provides updates on latest news and research from EIRIS. Additionally, the Ethical Investment Association provides regular training on ethical investment.
5) Become a specialist
If you are not working alone you might consider having an ethical investment specialist in-house, perhaps someone who is already interested or experienced in this field. UKSIF's online training course for financial advisers can help you develop the skills you need to advise on green and ethical investment.
