Financial consulting's turn towards eco-friendly practices - what lies ahead?
In an effort to make sustainable investing more accessible for clients, the Forum for Sustainable Investments (FNG) is set to publish an updated guide for financial advisors. This updated guide, due to be released in August 2025, forms part of the expansion of the EU Ecolabel for financial services, aiming to enhance transparency and comparability of sustainable financial products across Europe.
The head of the FNG, Angela McClellan, reveals that the updated guide will avoid using technical terms and will be posed in a positive and straightforward manner. Instead of focusing on the terms 'taxonomy' and 'disclosure', advisors will be encouraged to ask clients if they wish to promote sustainable economic activities or avoid negative impacts.
Last year, the FNG published a guide for financial advisors on integrating sustainability into the advisory process. This initial guide has proven beneficial, and the updated version, currently in progress, will be available on the FNG's website.
For active promotion, advisors could consider best-in-class approaches or funds that fall under Article 9 of the Disclosure Regulation. Based on the client's answers, the advisor must assign one of the three product categories: sustainable financial products in the sense of the EU Taxonomy Regulation, products in the sense of the EU Disclosure Regulation, or financial products that at least do not harm sustainability.
McClellan emphasises the importance of advisors formulating questions positively instead of asking "What don't you want?". She believes that this approach will make it easier for clients to understand the process and make informed decisions.
The FNG is a German, Austrian, and Swiss association dedicated to sustainable investments. With its updated guide, the FNG aims to make sustainable investing more accessible and understandable for clients across Europe.
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