More than half (53 per cent) of financial advisers say their knowledge of ESG issues is limited, as some warn this could lead to client exits.

A survey found a third (31 per cent) of investors said they had never spoken to their advisers about ESG issues, and 23 per cent had never been offered a sustainable investment product.

CoreData Research polled 100 UK advisers and 250 investors for HSBC Asset Management in the first two months of the year and found a considerable number of investors (42 per cent) said greater access to information would encourage them to take more interest in sustainable investing in the future.

The two biggest barriers to ESG investments for advisers were a perceived lack of ‘suitable products’ (57 per cent) and a lack of client demand for sustainable products (57 percent).

Instead of ESG, advisers ranked track record and risk level as the most important characteristics to take into account when choosing investment products.

Dan Rudd, head of UK wholesale at HSBC Asset Management, said: “As the number of governments and organisations making net-zero pledges increases against the backdrop of social inequalities resulting from the pandemic, it is unsurprising so many investors want their investments to reflect their environmental and social values.

“However, clearly more needs to be done to educate investors about the merits of sustainable investing and advisers will play a vital role in this process.”