ACTIONS FOR:

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. Behavior 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