Over 1,000 Australians surveyed this year expect their advisers to be knowledgeable about responsible investment, which increased from 54 per cent in 2020 to 64 per cent in 2022.

“The bar is raising for financial advisers,” RIAA chief executive Simon O’Connor said.

The figures aligned with the overall findings of the study, which showed that Australians are getting more serious about aligning their money with their morals.

“Australians are demanding more transparency from their providers, with 75 per cent wanting to know which companies their super fund, bank or other investments are invested in,” Mr O’Connor said.

“They are attuned to the threat of greenwashing, and it is holding many people back, particularly when it comes to switching to an ‘ethical’ bank.”

The findings come only weeks after research from behavioural finance experts Oxford Risk suggested advisers face losing clients over a perceived lack of focus and commitment to ESG investing.

According to Oxford Risk, two out of three retail investors are considering transferring their investments to a new adviser purely based on their current adviser’s engagement with ESG.

In fact, one in five said they have already done so or intend to do so.

“Advisers who do not demonstrate a commitment to and focus on ESG investing will lose clients, and investors are ready to move money to new advisers if they are unhappy,” said Greg Davies, PhD, head of behavioural finance, Oxford Risk.

“In particular, deployment of cash into new investments will greatly favour strong ESG propositions.”