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As misinformation around environmental, social, and governance (ESG) investing spreads via social media and unregulated platforms, financial advisers are being encouraged to partner more closely with ESG specialists to ensure clients receive accurate, informed advice.

At the Responsible Investment Association Australasia (RIAA) 2025 conference in Sydney, a panel of ESG experts highlighted the growing pressure on advisers to understand a highly nuanced and rapidly evolving sector. With the volume of ESG-related data and investment products multiplying, the panel emphasised the importance of collaboration rather than attempting to “know everything.”

Growing Complexity in ESG

The ESG investment landscape is becoming more layered and fragmented. According to the Global Sustainable Investment Alliance (GSIA), sustainable investment assets reached US$30.3 trillion globally in 2022,  a figure expected to continue growing as more investors seek values-aligned portfolios. Simultaneously, the number of ESG-labelled funds grew by over 30% in 2023 alone, as reported by Morningstar, creating an overwhelming number of options for both clients and advisers.

The practical challenge for advisers was summarised by Nathan Fradley, independent financial adviser and director of Ethos ESG:

“Running portfolios is already a challenge. Add ESG expertise on top, and it becomes too much for one person to manage effectively.”

The Rise of Misinformation

The call to lean on ESG professionals comes amid rising concerns about misinformation. A 2025 report by the International Panel on the Information Environment (IPIE), a global body focused on online information integrity, found that widespread misinformation is distorting public understanding of environmental solutions, including ESG investing. The report warned that coordinated disinformation campaigns are contributing to confusion and greenwashing.

This isn’t just a matter of knowledge gaps,  it’s about knowing when to collaborate.

“Advisers don’t need to have all the answers,” said Charlotte O’Meara, Head of Responsible Investment at Challenger Limited. “They should lean on super funds, fund managers, and ESG teams who are immersed in this space every day. That’s what they’re there for.”

Defining the Adviser’s Role

With these challenges in mind, advisers are urged to focus on their core role by providing strategic financial guidance, not becoming ESG analysts.

“You have to ask yourself what your job is,” Fradley concluded. “Is it to manage every detail of every fund, or to guide the client to the right resources and experts when necessary?”

As ESG continues to grow in prominence and complexity, the consensus is clear: advisers don’t need to be experts in everything. But they do need to know where to turn when deeper expertise is required.

How AJC Can Help

Navigating ESG can be challenging even for seasoned professionals, and having the right support makes all the difference. 

AJC specialises in making ESG clear, practical, and relevant. Whether you’re an adviser looking to deepen your knowledge or an investor trying to align your portfolio with your values, we can help.

For advisers, we interpret complex ESG data, connect you with credible fund managers, and build your confidence in client conversations. For individuals, we break down what ESG means in real terms, helping you understand where your money is going and why it matters. Click here for more information about our ESG services.

Contact us on 020 7101 4861 or email us at info@ajollyconsulting.co.uk if you think we can help.

References

https://www.morningstar.com/en-hk/lp/global-esg-flows?utm_source=chatgpt.com

Global Sustainable Investment Review finds US$30 trillion invested in sustainable assets

Climate misinformation turning crisis into catastrophe, report says | Climate crisis | The Guardian

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