The New Advice Advantage: Why Sustainable Investors Are Clients Worth Having

As advisers look to build more resilient and profitable practices, the challenge isn’t just attracting new clients — it’s attracting clients with ample wealth and who already see the benefit in professional advice about their investments. Our latest research suggests that sustainable investors may represent exactly that — a cohort who are younger, wealthier and more likely to value professional advice.

A Profile That Stands Out

According to Our Sustainable Investing Survey, the average sustainable investor in Australia holds an investment portfolio valued at $1.17 million — more than double the average held by non-sustainable investors. This alone positions them as a high-value client segment. But wealth isn’t the only characteristic that sets them apart. These investors are also younger, with an average age of 45compared with 53 for non-sustainable investors. Many are in their peak wealth accumulation years and are actively making decisions about how they want their money to be managed.

They’re also more likely to be receiving advice. Recent sustainable investors are 20% more likely to have a financial adviser, and those who do are more likely to invest sustainably outside of super. That suggests a deeper level of engagement — and a greater appreciation of the role professional advice plays in aligning financial and personal goals.

Informed, But Still Looking for More

These investors are not just more engaged — they’re also looking to become better informed. According to the research, 71% of current sustainable investors believe their investments are making a positive impact, but many want greater clarity. They say that better reporting and more transparent data would give them the confidence to increase their allocations.

This appetite for information creates a valuable opportunity for advisers to demonstrate leadership. Clients want help interpreting sustainability claims, understanding how impact is measured, and identifying solutions that align with their financial and personal goals.

This trend is even more pronounced among high net worth (HNW) sustainable investors. The survey results reveal that this group are likely to be more values-driven and less focused on long-term financial returns than other segments. This creates opportunities for deeper conversations that combine values-based considerations with more traditional financial advice – discussions that advisers are well placed to lead.

A Clear Role for Advice

The research makes it very clear that sustainable investors value advice. In fact, they rank financial advisers as their number one source of information on sustainable investments — above product providers, online platforms, or media. But they’re not just looking for product recommendations. They want help understanding how sustainable investments fit into their portfolio, how to assess the credibility of sustainability claims and align their investments with long-term objectives.

They’re also asking tougher questions. Greenwashing is one of the top two concerns for current sustainable investors – second only to performance. This is where advisers have an important role to play. By doing the research, understanding the evolving regulatory landscape, and recommending robust, reputable solutions, advisers can help clients make informed, confident choices.

A Strategic Growth Segment

As practices look to adapt to a changing market, sustainable investors present a clear opportunity. They’re engaged, growing in number, and looking for advisers who can offer advice and strategies based on their financial objectives and values. Advisers who can speak confidently about sustainable investing – not just the products but the trade-offs and opportunities – will be well placed to attract and retain this emerging client segment.

About the Research

The 2024 Sustainable Investing Report was commissioned by Investment Trends. The quantitative online survey was carried out in October 2024. The sample after data cleaning and validation was 1,010 investors.