Investing more in climate funds or the importance of training, raising awareness, and convincing

At the heart of these discussions, the acculturation of internal teams to ESG topics, through participation in climate workshops or e-learning training, as well as the best way to address the end customer, whether it’s the product design or overall communication.

A First Step: Training Teams

How to raise awareness among financial advisors about the importance of selling ESG products to their clients? Upskilling financial staff on ESG issues is a priority. In recent years, initiatives like the Climate Fresco or e-learning courses have multiplied within institutions like Spirica, Neuflize OBC, or La Banque Postale. However, the feedback remains mixed.

Daniel Collignon, former general manager of Spirica and consultant, emphasizes that “The Climate Fresco helped raise awareness among employees. But only a minority have truly integrated ESG issues into their daily lives.” The problem, according to him, lies in the gap between this awareness and concrete action.

At La Banque Postale, which has been a “Mission-driven company” since 2022, the approach is structured, as explained by Mimouna Boutchich, director of the Financial Savings and Insurance division: “We have sensitized all our teams through targeted training, but the results vary depending on individual interest. The challenge is to provide tangible tools to build their confidence with clients.”

At Neuflize OBC, Olfa Maalej, director of the Solutions Department, shares a key learning: “We started by training our teams on the terminology and basics of sustainable finance. This helped demystify the subject and provided solid foundations to start discussions.” However, the growing complexity of regulations, such as the Disclosure Regulation, creates tensions and further complicates advisors’ understanding.

Sensitizing Clients: Pedagogy vs. Performance

While training advisors is a first step, convincing clients to transform their portfolios by integrating climate components is the most complex step. Guillaume Lasserre, Director of Management at LBP AM, acknowledges that “one of the conclusions from mystery visits conducted with bank advisors is that the main characteristics of ESG products are not highlighted during client meetings,” often due to time constraints. “The advisor is under pressure,” he adds. For most savers, sustainable investment is still perceived as a compromise on financial performance. A mistaken but persistent perception, as noted by Karen Fiol, vice president of the National Chamber of Wealth Management Advisors (CNCGP): “We face the false idea that prioritizing ESG limits performance. This is a major obstacle to overcome.” “We’re all collectively fighting against this outdated image,” adds Guillaume Lasserre, who urges the industry to better highlight its actions in favor of the climate.

“We face the false idea that prioritizing ESG limits performance. This is a major obstacle to overcome,” Karen Fiol, vice president of the National Chamber of Wealth Management Advisors.

To overcome this obstacle, some players rely on pedagogy. Neuflize OBC developed training modules for clients in partnership with the University of Amsterdam in 2024. “These modules help clients better understand how their savings can have a positive impact while maintaining competitive performance,” explains Olfa Maalej. La Banque Postale, for its part, is experimenting with communication campaigns showcasing concrete examples of projects financed by ESG funds.

However, to properly introduce this topic into the customer journey, the financial advisor is hindered by regulatory requirements. As Karen Fiol reminds us, “regulation is incomprehensible for the final client. Taxonomy, SFDR, or PAI (Principal Adverse Impacts) are difficult concepts to translate into clear arguments. This hinders buy-in.”

Regulations, particularly the introduction in 2023 of an obligatory questionnaire for savers, are indeed cited as a barrier by many participants, such as Olfa Maalej: “Before the regulation, we had nearly 90% new ESG investment mandates from our clients. Since the questionnaire was introduced, as we left the choice of having an ESG investment to the client, we’ve dropped to 60% ESG investments. The questionnaire had the opposite effect of what we wanted.”

Tools to Connect Savings and Carbon Footprint

One promising lever to enhance buy-in for climate funds is the integration of the carbon footprint in savings decisions. Digital tools are emerging, such as the application developed by Neuflize OBC, which calculates the carbon impact of an investment portfolio. “We show clients the evolution of their carbon footprint if they redirect their savings towards responsible funds,” details Olfa Maalej. But this innovation also raises concerns about greenwashing, as expressed by one of the discussion participants: “This kind of tool must be accompanied by tangible proof to avoid suspicion.”

“It is important to remind and explain to savers that their investment choices contribute to the climate transition. Savings can be a concrete and positive lever,” Florence Clément, Coordinator of Public Information and Youth & Educational Missions at ADEME.

Beyond tools, several participants advocate for a comprehensive approach to awareness. Florence Clément from ADEME stresses, “It is important to remind and explain to savers that their investment choices contribute to the climate transition. Savings can be a concrete and positive lever.” In this regard, public information campaigns could continue to play a key role, showing, for instance, how certain financial products have funded concrete projects in favor of energy transition or biodiversity preservation.

Towards Integrated Climate Savings: The Role of Intermediaries

To overcome obstacles, better coordination between all financial actors seems essential. From product design to distribution, every link must be involved to effectively guide the saver. As Daniel Collignon points out, “We need to move away from a segmented vision where ESG savings is seen as a niche. All financial intermediaries must engage in this transition.”

A fun and educational tool, accessible before client meetings, could also facilitate this transition. The idea of an interactive support tool, such as a role-playing game or animation, could help demystify climate issues for savers.

“Savings is one of the levers that citizens can use to improve their carbon footprint,” Guillaume Lasserre, Director of Management at LBP AM.

Despite the many challenges, the signals remain positive. As Olfa Maalej concludes, “In five years, we’ve seen a real change in our clients’ expectations. If we continue to structure our offerings and raise awareness in a relevant way, climate funds can become an obvious choice for the majority of savers.” Similarly, Guillaume Lasserre reminds us that savings is one of the levers on which savers can act to improve their carbon footprint, something that climate workshops or the 2-tonne workshop might not emphasize enough. “We want to encourage the client to use their free will in managing their savings, to help them make progress in their climate action.”

The workshop concludes that selling climate funds is not just about adhering to complex regulations, but it is primarily a matter of pedagogy, commitment, and transparency.

Article written by Max Morgene.