Support for Environmental Sustainability Grows Worldwide Amidst Global Instability
In a significant development, the Sustainable Finance Initiative (SFi) has released the results of a survey conducted among 144 family office representatives. The findings indicate a strengthened commitment by family offices worldwide, and particularly in the Asia Pacific region, to sustainable finance amid global market turbulence.
Katy Yung, CEO of SFi, described the results as a "turning point" in the focus and refinement of strategies for achieving social impact and robust returns. Yung stated that the dynamism and determination of family offices in Asia Pacific reflect a maturing investment approach that combines societal impact with financial rigor.
The survey results suggest that a majority of respondents have reported that their sustainable investments have met or exceeded benchmark expectations. This trend is further underscored by the fact that over 90% of family office representatives worldwide have allocated a portion of their portfolios to sustainable investments.
One of the key findings of the survey is the growing risk appetite of family offices, as regulation in the sector improves. The survey data shows that 57% of family offices dedicate at least 10% of their portfolios to Impact-focused allocations, with 17% allocating more than half of their portfolios to sustainability-driven initiatives.
Geographically, the Asia Pacific region is a priority for family office investors, with 42% ranking it as their top area of investment. Looking ahead, Katy Yung believes that family offices in Asia Pacific will continue to drive positive change by aligning their resources with profitability and purpose.
The survey data does not explicitly identify a specific family that invests the most resources in sustainable investments in the Asia-Pacific region. However, it is noted that family offices in South Asia allocate a significant portion of their investments across traditional and alternative assets within the Asia-Pacific region, with 21 percent invested in Asia-Pacific excluding China, and increasing interest in China, India, and Taiwan.
The survey results do not indicate any changes in the percentage of family offices dedicating at least 10% of their portfolios to Impact-focused allocations. Direct investments follow venture capital and private equity as the second most preferred allocation method, with 22%.
In terms of thematic evolution, nature-based solutions, biodiversity, and regenerative practices have taken top positions, replacing food and agriculture, circularity, and healthcare as focus areas. Venture capital and private equity lead the allocation preference for family offices, according to the survey, with 25%.
In conclusion, the survey results indicate a strengthened commitment by family offices to sustainable finance, with a growing risk appetite and a refined focus on Impact-driven allocations. The Asia Pacific region, particularly South Asia, emerges as a key player in this shift towards sustainable investments.
Read also:
- "Wireless Equipment Empowerment by RF Venue at Austin's Stone Church" or "RF Venue's Wireless Equipment Powers Austin Stone Church".
- discovery of substantial 'white gold' reserves worth $540 billion beneath California's Salton Sea, potential game-changer for U.S. energy self-sufficiency confirmed by scientists
- Organic Avocado Mattress for sleep: Essential for a Healthy Rest
- Increase in Green Jobs by 48% in India, primarily fueled by Generation Z and secondary cities: Study reveals
