Navigating sustainable investing & ESG exposure for family offices

While historically they may have separated the notion of ‘wealth creation’ through the family operating business and traditional investments from social impact, which was addressed by ‘pure philanthropy’; changes in the investment landscape are resulting in a material shift in thinking. For many, investing that also achieves social impact, has now become a viable alternative to ‘traditional’ investing.

It has variously been referred to as social impact investing, sustainable investing, or Environmental, Social, Governance (or ‘ESG’) investing. Regardless of how it is characterized, we find that many family offices are now incrementally ensuring that their investment portfolios and operating businesses also reflect their values.

Investment avenues are also growing in line with the attraction for sustainable investing. Financial motivations can now be aligned with motivations previously served by pure philanthropy, ranging from tackling climate change to a personal sense of duty to the community, from leaving behind a legacy to aligning intergenerational passion for a particular cause.

Whatever those motivations may be, capital allocations from family offices can move the needle given their ability and willingness to invest in sustainability driven ventures with patient capital, and flexibility in allocation of capital across themes and sectors. Additionally, investment capital from family offices can be catalytic, both in terms of impact, as well as motivating other investors through their influence.

It is also aimed at walking you through six key steps that can assist in a family office’s journey towards a sustainable portfolio. Whether you have already embarked on your journey or are thinking of entering the fray for the first time, this paper will address why sustainable investing should be a key priority.