For UK financial advisers only, not approved for use by retail customers

7IM launches ESG Calculator for advisers

7IM has today announced the launch of a new interactive Environmental, Social and Governance (ESG) Calculator to help advisers better illustrate the sustainable impact of their investment choices to their clients.

Demonstrated in real terms – such as the equivalent of return flight trips from London to Tokyo or tumble dryer cycles – the calculator shows the equivalent reduction in carbon between 7IM’s Responsible Choice model portfolios and Sustainable Balance fund, compared to an investment in a global equity index.

The tool has been developed with both advisers and their clients in mind, creating an interactive experience which shows the user the carbon reduction of the investment in real life terms.

For example, a £100,000 investment into 7IM’s Responsible Choice Balanced model portfolio over a 12-month period, could be illustrated as a comparative carbon reduction equivalent to 29 car trips from London to Edinburgh or 2,463 kilos of avocado grown, ripened and transported.

Advisers will be able to share the tool directly with their clients or, if they prefer, have the option to produce a report that can then be shared with them.

The latest development comes as part of 7IM’s broader sustainability strategy, which has seen the firm leverage its expertise in responsible and multi-asset investing to launch a range of responsible model portfolios.

7IM has also formed two sustainability committees; the Culture and Sustainability Committee; and the ESG Investment Committee. The former is responsible for the oversight of the firm’s ESG activities and ensuring its commitments are met, including its target to reduce CO2 emissions by 20% and become carbon neutral from 2021.

The ESG Investment Committee takes ownership of the implementation of ESG factors into 7IM’s investment process, which includes the integration of ESG data, and allowing them to observe how carbon emissions are impacted by the tactical adjustments made to portfolios.

In addition to the two sustainability committees, 7IM has established a Diversity and Inclusion Committee, which champions initiatives that aim to make the company a more inclusive employer.

Verona Kenny, Managing Director of Intermediary at 7IM commented: “Consumer interest and appetite around ESG solutions has boomed in recent years, yet confusion around product types and areas such as impact vs. return is still widespread.

“As a partner to our advisers, we see our role not just in providing underlying investment solutions that can cater to this appetite, but in assisting in all aspects surrounding this topic and helping advisers communicate what good can and should look like when it comes to ESG. We hope that by developing new tools such as our ESG Calculator, we can help advisers cut through some of the noise around ESG, and allow clients to better understand, not just the different options available, but the real-world effect of choosing to invest in a more sustainable way.

“With this in mind, we have focused on developing something that would not just make this a more interactive process for financial advisers, but for their clients too.”

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