Sustainable and socially responsible investing (SRI) continues to gain momentum in the financial sector as investors become more aware of environmental, social, and governance (ESG) factors. With its significant tax advantages, Individual Retirement Accounts (IRAs) are ideal for advancing these investment practices. Financial institutions can harness IRA tax incentives to promote sustainable equity investments, delivering long-term client value while contributing to broader societal and environmental goals.
Millennials and Gen Z investors increasingly prioritize aligning their investments with personal values, favoring ESG-focused options that have demonstrated resilience and often outperform traditional portfolios during periods of economic volatility. Regulatory initiatives such as the Inflation Reduction Act and SEC climate disclosure rules further incentivize businesses and investors to adopt sustainable practices.
Financial institutions can capitalize on these trends by creating ESGfocused IRA products, designing educational campaigns to enhance awareness, offering personalized investment solutions tailored to client preferences, collaborating with sustainable companies, and incentivizing ESG-oriented contributions. By developing innovative products, fostering investor education, and proactively addressing challenges, financial institutions can establish themselves as leaders in the evolving ESG investment landscape.
This edition features Asbury Research, further exploring how the service providers leverage tax incentives, collaborate with regulators and industry stakeholders, and invest in technology solutions so that financial institutions can offer compliant and profitable equity services. The magazine also brings in perspectives from Jason Obradovich, Chief Investment Officer of New American Funding and Steven Shafer, Treasury Innovations Team Manager at Bremer Bank.
Building strong relationships with industry stakeholders, including investors, project developers, and technology providers, can help financial institutions navigate the regulatory landscape more effectively. We hope these valuable insights from industry leaders featured in this edition will assist you in making informed decisions for your businesses.
