Castlefield becomes founding member of AdviserAction

Castlefield has become a founding member of AdviserAction - a group of advice firms looking to influence the sustainable policies of investee companies.

AdviserAction provides the advisory industry with a platform to increase engagement with companies on sustainability issues and is thought to be the first membership organisation of its kind.

The group will pool its resources to enable advisers to engage with companies in a bid to improve sustainable outcomes for clients. Engagement is one of the ways investors can "change practices for the better" by using share ownership rights to influence policies.

AdviserAction provides the advisory industry with a platform to increase engagement with companies on sustainability issues

The announcement comes after the FCA recently published its sustainable labels for funds and anti-greenwashing rules.

The members of AdviserAction will be able to select a number of issues on which to engage with companies or policy makers. The first action it will focus on is mental health in the workplace.

Alongside Castlefield, the group's founding members include Clear Financial Advice, ESG Accord (Accord Initiative), Fintel PLC, Kellands Chartered Financial Planners, Lyndhurst Financial Management, Paradigm Norton and CCLA.

John Eckersley founder and chairperson at Castlefield, said: "The AdviserAction initiative will enable advisers to experience company engagement first-hand and, in turn, to talk to their clients about the benefits of investing in funds with active stewardship programmes.”

Peter Hugh Smith, chief executive of the CCLA, added: “With the final rules on the FCA’s Sustainability Disclosure Requirements now published, we believe engagement is more important than ever as a way that investors can encourage companies towards sustainability improvements and make a noticeable difference, whatever the size or scope of their portfolio.

"This initiative will, for the first time, empower independent financial advisers to speak on behalf of their customers to the firms they ultimately invest in, and to participate in working towards a better world.”

AdviserAction is open to any adviser firm wishing to join and will be overseen by an advisory committee formed of its members.