Just 1 per cent of financial advisers and wealth managers ‘completely trust’ the sustainability claims from funds, research from the Association of Investment Companies has revealed.

But despite this mistrust of ESG claims, advisers and wealth managers remained supportive of ESG investing, with 79 per cent of those surveyed agreeing that ‘investments should make a positive difference as well as a financial return’.

The AIC surveyed 200 intermediaries, including 109 financial advisers and 91 wealth managers, and asked them to rate their trust in funds’ sustainability claims on a scale of one to five.

The majority of respondents (56 per cent) indicated they had ‘limited trust’ in these claims.

The AIC’s head of intermediary communications, Nick Britton, said advisers and wealth managers are awake to greenwashing, which is where firms promote unsubstantiated claims to make consumers believe their products are more ESG-friendly than they are.

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