Almost all respondents to an international study agree that ESG will become a greater element of fiduciary duty
Family office professionals will be expected to pay more regard to ESG principles in the years ahead according to a new report.
An overwhelming 88% of respondents to the survey said that this will be more of a focus from a fiduciary perspective in the next three years, while 91% agree that ESG is part of a family office’s fiduciary duty.
This aligns with the views of a Calgary-based portfolio manager who recently told Wealth Professional that ESG investing will become the norm before the end of this decade.
The international research from Ocorian, a global provider of services to high-net-worth individuals and family offices, also revealed that 93% of respondents believe ESG principles are a key consideration for their family office investment priorities.
The rise in importance placed on ESG principles will see a dramatic increase according to almost 4 in 10 poll participants, while just 1 in 10 expect it to stay as it is now and 1 in 100 expects it become less important.
“Our research shows that the majority of family office professionals already see ESG as part of fiduciary responsibilities, but there is set to be an increasing focus from a fiduciary perspective over the next few years,” said Amy Collins, Head of Family Office at Ocorian.
Younger generations
Ocorian recently published a report showing the rising influence of younger generations on the direction of travel for family offices.
It found that 87% of family office professionals reported that the next generation was more involved in the development and assessment of their family office's investment strategy and 35% said the next generation are significantly more engaged in the investing strategy of the family office.
Collins says that this is reflected in the latest research on ESG principles.
“We're seeing many family offices, particularly those with a heavy influence from younger generations bringing in new ideas and values which increasingly align with sustainable investing principles," she said.
The ESG principles survey was conducted among more than 130 family office professionals responsible for around $62.425 billion assets under management.
