A third (35%) of advisers are confused by the growing array of ESG regulations intended to combat greenwashing, according to the new report from financial services research firm CoreData.

The level of confusion was highest for advisers with a focus on mass market clients (43%), but was also high among mass affluent (30%) and high net worth (36%) advisers.

The report also highlighted low levels of knowledge.

A third (29%) of advisers said their knowledge of the Sustainability Disclosure Requirements is poor. With only one in five (17%) of advisers indicating they have a solid understanding of the incoming regulation.

Four in ten (39%) of the advisers surveyed in August said they needed more ESG training but only a third (34%) said their firm provided ESG training.

Just one in five (20%) advisers said their firm has, or plans to have, at least one member of staff in a dedicated ESG role. Dropping to less than one in 10 (8%) mass market advisers.

HNW advisers were far more likely to work for firms with specialist ESG personnel, with a quarter of firms having a dedicated resource (25%).

Andrew Inwood, founder and principal of CoreData, said: “Financial advisers are battling against a hazardous set of headwinds including inflation, interest rate rises and a cost of living crisis which has sent UK investors running for cover.

“But as advisers swim against these currents, they also need to contend with a wave of ESG regulations. So it is little wonder that some are feeling confused and calling for additional training.

"This situation provides an opportunity for asset managers and providers to bridge the ESG knowledge gap through the provision of educational and training materials for advisers.”

• CoreData Research surveyed 266 UK financial advisers in August.