The Investment Association has promised to increase its focus on sustainability and stewardship to help investors navigate global climate change challenges.
The commitment forms part of the trade body’s ‘2025 Vision’ report, launched today (27 June 2019) at its annual Policy Conference.
As part of the developments, the Investment Association is striving for greater clarity of approach in the area of sustainable investment, as well as more consistent definitions, labelling and disclosure.
The group’s chief executive, Chris Cummings, said this will help investors “navigate this new landscape with confidence.”
“The investment management industry is at an inflection point,” he said. “The needs of our customers are changing rapidly, societal expectations are rising and technological advances will be transformative.
“The IA is today setting out a series of concrete actions, building on existing initiatives that will help to ensure we can deliver in the UK and globally.”
Cummings said that three-quarters of UK households use the services of an investment manager, and it was therefore necessary for the industry to have a vision for the future which is focused on its customers, ensuring they can achieve sustainable, long-term returns.
“In getting this right, we will also make sure that funding flows effectively through the economy, helping companies grow and public infrastructure to be financed, meeting the needs of future generations,” he said.
In order to achieve the aims set out in the report, the trade body will work with the industry and regulator to strengthen governance structures and build more diverse and inclusive workforces.
It will also look to increase the available body of research that demonstrates a correlation between diversity, better decision-making and long term financial performance.
As part of the commitment, which takes into account the move by the industry to become more digital, investors should also benefit from more transparent and effective disclosure
According to Cummings, this ensures all investors – whether advised or not – have access to the products that best help them achieve their financial goals.