According to Morgan Stanley, 85% of individual investors in the United States are interested in sustainable investing – but only 10% are actually doing it.
Gabe Rissman, the President and Co-Founder of YourStake, which helps advisors align client portfolios with their values, believes there are a few reasons.
One: The industry is making a mistake and assuming ESG means the same thing to everyone.
Not all ESG investors are created equal, and one ESG portfolio isn’t going to be a match for all ESG investors. There are so many different variations of ESG and values-based investing, and it’s impossible to correctly assume which issues every individual client cares about without asking them.
“There are people who are hunters that really care about the environment and forced labor and gender equality,” explained Rissman. “So figure out what your client actually cares about, not what you’re assuming.”
Two: Advisors are thinking about ESG investing in terms of ESG scores, while clients think about it in terms of real, tangible values.
Most clients aren’t saying to their advisors, “I want a superior ESG portfolio.” What they’re saying when their advisors actually ask is: I don’t want to invest in prisons. I don’t want to invest in fossil fuel companies. I want to invest in clean energy companies and companies with good gender diversity.
“And that’s how advisors should talk about it,” said Rissman. They should be asking clients, what do you care about? What are the issues that matter to you? How can we create a portfolio that’s better on gender diversity, rather than focusing on the best methodology for conducting an ideal score?
Three: Greenwashing is the biggest thing working against the growth of ESG.
Greenwashing, a term that refers to inaccurate or misleading representations about a company’s environmental friendliness, is used in ESG investing to describe strategies or initiatives that don’t align to an investment product’s sustainable label.
“Marketing language is outpacing actual practices, causing people to lose trust,” said Rissman, who believes our industry is moving in a “prove it” direction.
Catch Gabe Rissman Live at Future Proof
Rissman will take the stage at Future Proof Festival in Huntington Beach this September to share his vision for the future of ESG, values-based investing and personalization.
“You’ll be able to walk your client through all of the aspects of their life, their values, how they want to retire, and capture all the preferences the client has, and what they need to have a successful experience with you. Advisors will have the ability and the tools to create personalized solutions to be able to serve that. So that means personalized portfolios, and better advice,” said Rissman.
“And I see the industry going to a place where advisors will have to prove exactly what they’re doing. So if you capture my values as a client, you’re putting a portfolio together, then show me with full transparency that it’s actually accomplishing the job that I want it to do. That’s where I see the field moving.”
John Swolfs is the Chief Content Officer at Advisor Circle, a product studio for growth-oriented financial professionals. John is responsible for creating dynamic programs for Advisor Circle’s world-class events which include Future Proof festival and Exchange, the world’s leading ETF event.
Future Proof is set to bring together the world’s most prominent figures and emerging minds to explore the intersection of money, tech, culture and impact.
Future Proof brings together an entirely new community of financial advisors, institutional investors, asset managers, fintech startups, investors, financial creators, activists, artists, musicians and other key stakeholders around an unprecedented experience and agenda.
Future Proof brings together the best and brightest advisors from across the country. This exclusive event allows the Investopedia Top 100 advisors to reconnect, share insights and celebrate their achievement of being named to this prestigious list.
Get the latest scoop on pivotal industry topics and current events affecting the wealth space. By leveraging our robust event technology, you’ll have the opportunity to create both peer-led and industry-led roundtable-style discussions. Learn more about the most pressing topics impacting the future of wealth. These hard conversations are made easier as you and your cohorts grab some ice cream and settle in for an informal yet highly engaging conversation.
rhe Creator Corner is built to support creators, creatives and brands. It’s equipped with a podcast recording studio and first-of-its-kind Collab Lab. The podcast area will afford attendees the ability to record podcast sessions and will feature podcast consultants helping to answer questions of both existing podcast hosts and aspiring creators. The Collab Lab is where asset managers and fintech companies collaborate with leading and emerging finance influencers. Looking for engaging content built for the modern financial professional or investor? We offer high quality video and audio production for all your creative needs.
Future Proof Live is our full-production broadcast studio strategically placed at the heart of the Boardwalk. Our very own Future Proof anchors will provide all-day commentary featuring casual speakers and celebrity interviews as well as unexpected guest appearances. Future Proof Live extends our one-of-a-kind experience to a larger audience virtually.
The Pacific Highway stage is the most versatile stage at Future Proof. With countless setup options, the PCH Stage is your go-to spot for industry insight and innovation, all while staying current with the latest trends in money, culture, tech and impact.
As the beating heart of the boardwalk, the Ocean stage will feature seating for over 500 and have the look and feel of a concert venue on the beach. The ocean stage will host a range of exciting content from industry-changing keynotes to the closing concert featuring today’s biggest musical acts.
Podcasts are all the rage, as they excite and entertain audiences from afar. Future Proof changes the game, as we invite your favorite podcasters to host their shows live from the festival. Forget passive listening. Future Proof’s Live Podcast sessions allow you to interact directly with your favorite podcast creators as they record live episodes just feet from the Pacific Ocean.
You can’t expand your perspective and think differently if you aren’t exposed to a broad perspective. That’s why our speaker faculty isn’t limited to traditional finance. The Brewing Lounge will bring out-of-industry experts to present their visions for a new world of wealth. To help fuel the conversations, we’ve created a true coffeehouse feel complete with baristas just waiting to pour you the perfect cup of joe.
Nobody likes to be pitched, but the truth is we all need a little help keeping up to speed on our dynamic industry. The What’s Poppin’ Pitch Lounge sets the tone, giving you intimate access to short and punchy demos from the most innovative fintech companies in the world. Grab a bag of popcorn, sit back, relax and absorb the next wave of innovation impacting the world around you.
Future Proof’s Wheel of Impact promotes the power of giving in a fun, dynamic and social way. With a donation of any size, attendees can have the ability to spin the wheel, determining where the donation will go and how it will be used. Land on the “mystery” selection and have a chance to win items, trips and other experiences.
Join 30+ executives from the country’s top-ranked RIA firms for a VIP evening reception.
If you are an executive leader (or owner) of a fast-growing RIA firm and are interested in participating get in touch with us today. Space is extremely limited.
The Future Proof Festival experience roles on as we host our annual music festival. This year’s lineup features an array of artists and musicians covering everything from rock classics to hip hop. Come early and stay late sampling the numerous food trucks and bars. Don’t miss headliners rap legend Big Boi and indie pop sensation Fitz and the Tantrums showcase their talents.* * admission is included with your Future Proof Pass.
Relax and unwind as you connect with the Future Proof community, as you enjoy and evening of tasty bites, and delicious cocktails as celebrity DJ, DJ Mick sets the vibe as the sunsets on the beautiful Pacific Ocean.
Physical and mental health is the cornerstone of any successful long-term wealth plan. But for years, our industry has prioritized work over health, leading to unhealthy lifestyles and employee burnout. The Health Is Wealth Center provides a warm and relaxed setting, allowing attendees to come in and recharge, grab a drink from the juice bar and eat healthy snacks. The space will also be home to daily group yoga and fitness classes as well as meditation sessions.
Future Proof does nothing small. Join us on Monday morning for the grand unveiling of our half-mile beachfront boardwalk complete with activations, meeting areas, multiple stages, and everything else you need to make your Future Proof experience truly one of a kind.
We are in Surf City U.S.A – of course we are going to have surf lessions. Whether you are catching barrels are just learning to stand come out be part of the community and tick learning to surf off your bucket list.
Join 25+ key financial media, industry reporters, and other press for a media-only evening reception.
If you are a member of the press and are interested in participating get in touch with us today. Space is extremely limited.
As a member of the press, you will have the opportunity to RSVP for both receptions on Sunday and Monday.
Maximize your time at Future Proof by participating in a 10-person advisor networking dinner organized by us and industry partners. Held at popular downtown Huntington Beach restaurants, our organized Advisor Networking Dinners will provide you with a one-of-a-kind culinary experience while making new friends and catching up with old ones. Space is extremely limited. Must RSVP.
Just because you are away from home it does not mean you need to miss your workout. Start each day with a HIIT beach workout hosted by the Future Proof communities Jess Bost. * space is limited, preregisteration required
Future Proof puts a value on your health and ability to decompress from the grind of festival life. Begin your day with a focus on centering body and mind for a day of meetings, networking, and more.
Your mental health is as important as your physical health. Set the tone for each day as you take the time to relax your mind, center your thoughts and prepare yourself for the day ahead.
Investing has become mainstream and nowhere is this better encompassed than in the new documentary film This is Not Financial Advice. Join us as we invite the cast and crew for an open conversation on the mindset of today’s investors, and take a closer look at investing as a cultural phenomenon and show clips from the movie.
Join your fellow peers for an all access experience with indie pop sentation Fitz and the Tantrums. This excluisve event is a can’t miss experience for any music fan.
Cultural icons and financial influencers Earn Your Lesuire host their wildly popular Market Mondays Show live from the Future Proof stage. This can’t miss sessions ties together market events and education to help investors be better invested.
Hear podcast legend and host of Masters In Business Barry Ritholtz for a can’t miss live recording of the most influential podcast covering the world of business.
Recgonized as one of if not the most influential podcasts Invest Like the Best records live from Future Proof. Join host Patrick O’Shanunessy and his guest for indepth look at the markets, investing and the world of business.
The world of sports is more than just the games. In this unique session, Bloomberg Chief Corresponded Jason Kelly hosts financial advisorJoe Mclean and his superstar sports clients for an in-depth look at the changing world of sports and why more athletes are embracing investing and building wealth beyond the court.
Future Proof is all about experiences. Rub shoulders with Big Boi in this invite-only meet & greet in the Future Proof green room.