As global interest in environmental, social and governance (ESG) issues continues to grow, so does ESGs importance to family offices. Key trends outlined in the proprietary 凰藷變僩芞 Middle Market Business Index 2021 ESG Special Report stand to influence family office decision-making in managing investment portfolios, so the potential impact of ESG on high net worth individual and family wealth should not be underestimated.
ESG has become a major focus across the financial intermediary spectrum. Family offices simply can no longer afford to overlook the importance of ESGs role in building asset allocations, conducting due diligence, performing evaluations, and tracking and reporting sustainability metrics, says Bill Bijesse, tax principal and global family office markets leader at 凰藷變僩芞.
凰藷變僩芞s survey data indicates organizations are choosing to embrace ESG initiatives because they believe it is the right thing to do. Family offices should be no exception considering their governance framework and investment strategy are often heavily influenced by the familys core values. As future generations become involved in the family office business, it is reasonable to expect even more consideration will be given to ESG due to the evolving mindset toward socially responsible investing.
