Financial Planning Institute (FPI) Convention 2019

Why financial advisors can no longer ignore ESG

It has been demonstrated time and time again that ESG issues have the potential to influence investment returns over the short, medium and long term. One does not have to look far. Ordinary South Africans invested through their savings products became poorer as a result of malfeasance, lack of governance and poor oversight at the likes of Steinhoff, Resilient, African Bank, VBS, Enron, BP and Eskom to name a few. Investor demographics are also rapidly changing with millennials and women projected to control two-thirds of the world’s wealth by 2020, they will influence where and how their money is invested. Issues such as climate change, ethical investing and social impact will drive investor behaviour. Given such dynamic trends our session will focus on equipping financial advisors with the necessary skills to develop ESG related expectations to adapt to this evolving environment. We will:

  • Introduce advisors to the E, the S and the G and what they mean and what they don’t mean supported by examples.
  • Look at the principles that define and inform ESG related expectations.
  • Go through the questions financial advisors should ask of the asset managers whose products they utilise.
  • Take a look at how financial advisors can play a role in mitigating another Steinhoff through being active stewards of capital.
  • Provide insight into widening the investment opportunity net and identify solutions that have the ability to deliver superior investment returns and do societal good.
  • What are the Principles and Strategy that encapsulate core ESG Management

Ms Fatima Vawda, Managing Director, 27four Investment Managers

Ms Thenjiwe Maseko, ESG Analyst, 27four Investment Managers