Sustainable Investments Can Power NextGen Engagement

Why do family offices prioritize sustainable investing?

According to Citi Private Bank’s 2024 Global Family Office Survey Insights, the most frequently cited reasons are that the investments reflect the personal values of the family (35%), they align with the family office’s mission (33%), or they target competitive long-term returns (29%).

Another frequently cited goal for a focus on sustainability is to help engage the next generation. Citi’s survey bears this out: Among family offices serving G1, 41% said they had no sustainable investments. This number decreases as family offices branch out to serve later generations: Only 33% of those who serve G3 or later had none.

Similarly, when it comes to family offices that have 10% to 25% of their portfolio in sustainable investments, just 10% of those serving G1 fall into this category, compared with 24% of those serving G3 or later.

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The study also looked at the challenges family offices face in incorporating sustainable investments into a portfolio:

  • Limited availability of investment opportunities with competitive financial performance: 33%
  • Uncertainty about how to transform sustainability objectives into an actionable investment strategy: 23% 
  • Lack of compelling investment opportunities that reflect sustainability aims: 19%

And it noted the barriers family offices have found to funding environmental causes:

  • Other focus areas are more important: 44%
  • They lack familiarity with ways to support these causes: 25%
  • They worry that the issues are too intractable: 25%

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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