5. Impacts and Consequences for Investors

The chapter discusses the mandatory integration of ESG preferences in wealth and asset management under the EU Action Plan for Sustainable Finance. It outlines the core duties of client advisors toward retail clients, including understanding client needs, assessing product suitability, conducting due diligence, and providing transparent advice. The text also addresses the fiduciary duties of institutional clients, such as pension funds and insurance companies, in evaluating investment offers and products. It emphasizes the importance of comprehensive due diligence, alignment with investment policy statements, and consideration of ESG factors. The chapter offers practical examples and strategies for managing client preferences and risk profiles, ensuring investments align with both financial and sustainability objectives.