Is this the Kodak Moment for Financial Advisers?
In 1996, Kodak was a giant. $16 billion in revenue. $2.5 billion in profit. Patents on the digital camera that would change everything. Yet by 2012, it was bankrupt. Not because it missed the future, but because it failed to move with it.
They had the future in their hands and let it slip away.
Advisers face the same risk today.
Signals of change
Sustainable investing is no fad. Institutional money is shifting billions. Climate risk is now systemic. Public expectations are rising. Nearly 70 percent of investors say they are uncomfortable backing companies that harm the environment or mistreat people. Yet more than half do not know if their portfolios are sustainable[1].
Imagine, loyal clients asking tougher questions about where their money goes. If they do not get answers, will they lose confidence in the advice given and maybe consider leaving? Or, ambitious and values-driven clients, bored by advisers who still talk only in basis points. They may not complain. But will they just go?
Markets are moving too. MSCI data shows companies with stronger ESG scores are better placed for resilience in a decarbonising world. This is not about sacrificing returns. It is about managing risk.
The next generation
Only 39 percent of investors under 40 expect to stay with their parents’ adviser[2]. We know that retaining clients is important for business as acquiring new clients is costly and if wealth moves, it rarely returns.
The opportunity
This is not about abandoning what worked. It is about evolving to stay relevant. Sustainable investing is a chance to build trust, deepen conversations and secure continuity.
Kodak had data and warnings, but defended the past until it was too late. Advisers have the same choice. Sustainable investing is not tomorrow’s trend. It is today’s edge.
Adapt early. Build trust. Lead the conversation.
[1] UKSIF “How to Talk to Clients About Sustainability” Report, 2024 https://uksif.org/how-to-talk-to-your-clients-about-sustainability
[2] Morgan Stanley “Sustainable Signals: Individual Investors 2025” Report https://www.morganstanley.com/content/dam/msdotcom/en/assets/pdfs/2025_Sustainable_Signals_Individual_Investors_2025_report.pdf