Wealth Advisors & Consultants
Wealth advisors and other consultants will play a key role in achieving this strategic plan and realizing our vision of a future where all investments contribute to positive social and environmental impact. There are a number of recommended actions in this Roadmap that they are especially well suited to advance, outlined below.
2. Norms and expectations
Align Incentives with Impact
What
Update existing incentives structures so that allocation and compensation decisions reflect impact performance
WHY
To increase accountability and demand for impact
who
Asset owners and asset managers
when
Immediately, with steady uptake over five to seven years, enabled by standardized impact measurement practice
4. Tools and Services
Develop Ratings for Impact
What
Build ratings that assess a range of factors related to impact and incorporate impact into existing indices and ratings
WHY
To enhance the credibility and comparability of impact investment products through rigorous third-party research and thus reduce diligence costs
who
Ratings agencies, including boutique firms and mainstream ratings actors
when
Over the next five to seven years, with efforts to analyze impact performance beginning immediately
4. Tools and Services
Build Analysis and Allocation Tools that Integrate Impact with Risk and Return
What
Build investment analysis tools and theoretical models that examine risk, return, and impact
WHY
To enable efficient evaluation of investment opportunities and help direct capital to the highest-impact opportunities
who
Service providers and asset managers
when
Begin immediately and continue to refine as more data become available