Sustaining sustainability gains support from families amidst worldwide tumult
In a recent survey conducted by the Sustainable Finance Initiative (SFi), it was revealed that over 90% of family offices worldwide have allocated a portion of their portfolios to sustainable investments. This shift towards sustainability is particularly evident in the Asia Pacific region, where geographically, it ranks as a priority for family office investors, with 42% ranking it as their top area of investment.
The survey, which polled 144 family office representatives worldwide, also found that venture capital and private equity lead the allocation preference for family offices, accounting for 25% of investments. Direct investments follow as the second most preferred allocation method, accounting for 22% of investments.
The top focus areas for family office investments in 2025 are nature-based solutions, biodiversity, and regenerative practices, replacing last year's focus areas of food and agriculture, circularity, and healthcare. This shift reflects a maturing investment approach that combines societal impact with financial rigor, as described by Katy Yung, CEO of SFi.
Katy Yung stated that the dynamism and determination of family offices in Asia Pacific reflect a maturing investment approach. She further described the results as a "turning point" in the commitment to sustainable finance. Looking ahead, she believes that family offices in Asia Pacific will continue to drive positive change, aligning their resources with profitability and purpose.
The survey also revealed that 57% of the family offices dedicate at least 10% of their portfolios to Impact-focused allocations. Moreover, 17% of the family offices allocate more than half of their portfolios to sustainability-driven initiatives. A majority of respondents in the survey reported that their sustainable investments had met or exceeded benchmark expectations.
The survey findings suggest that family offices' risk appetite may grow as regulation improves. However, the family of capital that has most strongly increased investment in sustainable projects in the Asia-Pacific region in recent years has not been explicitly identified in the provided search results.
Despite the lack of specific data on changes in focus and allocation in the Asia Pacific region, the survey results indicate that family offices have not only maintained their focus but also refined their strategies for both social impact and robust returns. This shift towards sustainability is a promising sign for the future of investment and the environment.
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