According to Campden Wealth and Raffles Family Office’s Asia-Pacific Family Office Report 2022, family offices are increasing their commitment to sustainable investment due to an increased consideration of environmental, social, and governance (ESG) factors, technological advancements, and a next-generation-driven desire to improve the world.
According to the recently published survey, 29% of family offices in the Asia-Pacific region are now involved in sustainable investing, up 4% from 2021 and 2% more than the global average. Over the following five years, this is anticipated to rise to 50%.
“I think most family offices have always been open to sustainable investments but there just weren’t as many options available, now with many countries making commitments to becoming carbon neutral and increased awareness in ESG, it just makes it easier for investors to invest sustainably.”
A next-gen family office principal – Victoria But
According to the study, among international family offices, sustainable investments increased from 21% of portfolios in 2020 to 27% at present and are anticipated to reach 38% by 2027. There is a noticeable improvement, but there are worries that this may not be sufficient to bring about true sustainable change.
In 2022, the value of global ESG assets is predicted to reach $41 trillion, or about one-third of all assets managed (AUM). This sum is distributed roughly equally between North America and Europe, with Asia-Pacific and Japan making up 15% of the total. But according to the research, Asia-Pacific is outpacing North America in terms of ultra-high net worth (UNHW) family engagement.
Why Are Family Offices Increasing Sustainable Investing? – CampdenFB
