KR Foundation – WWF Asset Owner Project
Empowering retail investors to divest from fossil fuels
Currently, certain aspects of the European Sustainable Finance Action Plan are not being implemented, particularly when it comes to efforts to respond to retail investors’ non-financial investment objectives.
In order to ensure ambitious implementation of the European Sustainable Finance Action Plan, we are engaging with European policy and supervisory institutions with support from the KR Foundation and WWF European Policy Office. The objectives are to provide decision-makers with clear guidance to be able to specify the new obligations for financial advisers to inquire about the non-financial investment objectives of retail investors on the demand side. We are also developing clear recommendations to enhance the transparency of investment products in relation to their non-financial performance and approach.
This project is supported by a grant from the KR Foundation.
Hewlett Foundation/Sustainable Finance Questionnaires Project
Providing evidence for retail investors’ non-financial objectives
This project aims to provide more evidence on the actual objectives of retail clients, market practices and the legal situation. In this context, we are undertaking a number of activities:
- Legal analysis (focus on EU and Germany) on financial advisers’ current obligations to inquire about non-financial objectives of their clients, and discussion of the findings with stakeholders (industry, policy makers and regulators).
- Mystery shopping visits in Germany and France to test the current situation that clients are facing
- Representative client surveys and consumer focus groups in Germany and France to better understand their investment objectives and develop a client-tested questionnaire that can be used by financial advisers.
This project is supported by a grant from the Hewlett Foundation.
The project’s aim is to pave the way for a new kind of retail investor financial product that satisfies two seemingly contradictory demands from retail investors: 1) to make a difference with their investments and to help foster sustainable development and 2) to satisfy the low-risk investment approach of most retail clients.
This project has received funding from EIT Climate-KIC.