The Single Family Office Compensation Report from Morgan Stanley Private Wealth Management and Botoff Consulting, a survey of over 400 single family offices in the United States, found that over half (55%) of respondents said social impact investing did not influence their family’s investment strategy. A smaller proportion, 21%, said a portion of the family’s portfolio went to impact investing. Just 3% said most of the family’s investments did.
That doesn’t mean that family offices are not looking at how their investments can make a difference, though. The report places impact investing at one end of a continuum, a way investors can maximize the positive impact of their investments. Another way to do this is by investing in companies that are creating solutions to help achieve key sustainability goals.
There is another side to this spectrum: one in which investors seek to minimize the negative impact of their investment choices. Investors can do that by screening investments to avoid certain companies or sectors, or by investing in companies that demonstrate sustainable practices.