Rich Families Pour Wealth Into $31 Trillion ESG Opportunity

Tuesday, September 17, 2019

By Benjamin Stupples and Suzanne Woolley

Super-rich families are increasingly including sustainability and ethics in founding principles of their private investment firms, according to Fabrizio Campelli, Deutsche Bank AG’s global head of wealth management.

“Family offices are now putting ESG in their investment charters,” he said, referring to environmental, social and governance matters. There are some family offices in California that can’t invest less than 40% of their assets in ESG, he said.

Demographic shifts are encouraging a surge of activity designed around investments to combat climate change, address inequality or simply to encourage companies to operate in a more sustainable fashion. Assets managed using a broad definition of the approach reached $30.7 trillion at the start of 2018, about a third more than two years earlier, according to a report funded by a group of financial companies, including Bloomberg News parent Bloomberg LP.

Photo courtesy of sallyjermain.

Source: Bloomberg (link opens in a new window)

impact investing, philanthropy