Wealth is no longer a singular goal for most high-net-worth individuals and families — it’s a means to a purpose. Practitioners are seeing rising demand for values-aligned strategies, especially as wealth transitions to younger generations and women, according to a recent “Attitudes on Wealth” survey of nearly 1,000 advisors. These clients want to know: Is my money doing good?
Impact reports can be a powerful way to demonstrate that it is — and to build trust. But they’re a tool that most advisors underutilize. Instead of letting reports gather dust in the back of an investor portal, bringing impact reports into the heart of client conversations can help clients see the full story of their portfolio.
Done well, impact reports move beyond spreadsheets and data tables. Numbers matter, but so do stories — and reports can deliver both. Impact reports can highlight carbon reductions or increased access to capital, with testimonials from the communities served. They’re also key tools in multi-generational planning and values discovery — especially when tied to philanthropic planning, legacy conversations or a family impact statement.
How to use impact reports with clients
- Use impact reports to kickstart values conversations
Rather than starting with “What do you want to invest in,” lead with “What kind of change matters to your family?”
Sample impact reports can then show, in concrete terms, how those values play out in investments. Clients respond more strongly to real outcomes than to hypotheticals. A story of a female entrepreneur who grew her business with access to capital, or the quantified reduction in emissions from a renewable energy project, often resonates more deeply than charts alone. - Connect reports to broader wealth planning goals
Impact reports should not be siloed. Tie them to philanthropic giving strategies, trust structures or foundation allocations. Use insights from impact reports to show clients how their charitable capital complements their investment strategy.
Impact investing can be a great way to engage the next generation, test values in action and build shared purpose. Use reporting to reinforce this. - Make reporting a standing agenda item
Treat the annual or semi-annual impact report like you would a portfolio review. Set time aside to walk through it together. Ask simple but revealing questions, like: Does this reflect the type of change you hoped to see? Which outcomes stand out to you? What’s missing?
These check-ins help keep clients engaged and also acknowledge that their values may evolve, keeping you in the loop.
Some advisors are also using reporting to highlight the difference in impact, risk and return between “catalytic capital” and more traditional ESG investments. Both serve a purpose — but have very different impacts.
Shape your next impact reports: Impact investment managers want your feedback
Impact reporting is still evolving, and it works best when shaped by those who use it. If you’re a financial advisor, foundation leader or family office team member, the people managing the impact investments in your portfolio want to know:
- What would make impact reporting more actionable in your client conversations?
- Where are the gaps? Too much data? Not enough benchmarking? Hard to tie to financial goals?
- What tools or templates would help?
The industry continues to explore ways to co-create better reporting tools, and investment managers want your feedback. The next generation of reporting tools will only be as good as the real-world guidance that shapes them.
As interest in values-aligned investing grows, impact reporting will increasingly be one of the defining touchpoints of advisor-client trust.
Tell us what you’re looking for in the ImpactAlpha Slack Channel or at [email protected].
Liz Sessler is president, COO and co-founder of CapShift.
Advisors’ Corner is a content partnership between ImpactAlpha and CapShift. CapShift’s impact investing platform empowers financial and philanthropic institutions — and their clients — to invest in their vision for a better tomorrow. All content is solely for informational purposes and should not be used as the basis for investment decisions.
