A majority of advisors think offering sustainable and impact investing services to clients could be a way of growing their businesses, according to a new report from Calvert Foundation.

The findings of the survey, Gateways to Impact, would be a boon to the sustainable community if borne out, as it found that 72 per cent of advisors would be willing to recommend sustainable investments to around one-third of their clients. Furthermore, it found that they would recommend a 10-20 per cent allocation to sustainable and impact products to these clients, representing “a market potential of $650 billion.”

The report is based on 1,065 US financial advisors, all currently managing client money.

"People want to align their money with their values, and there is growing recognition on behalf of financial advisors that they need sustainable and impact investment products to offer their clients,” said Lisa Hall, president and chief executive of Calvert Foundation.

Specifically, 38 per cent of the advisors expressed “strong interest” in recommending sustainable investments while 72 per cent expressed “some interest.” The advisors with a strong interest were more likely to be female, have advanced certifications, be affiliated with national RIA firms, have average client assets under management of between $1 million and $10 million, and have been in the advisory industry for under ten years.

"Sustainability is no fad,” said William Crager, president of Envestnet, one of the study’s sponsors. “[It] has become an essential part of business performance and competitiveness. The business world is changing. The need for efficiency feeds innovation in sustainable practices that are designed to lower costs and protect future supply and distribution chains."

To view a recent interview with an expert on sustainable investing, click here.