25/01/22

HONG KONG: Family Offices Eye ESG Boost in 2022.

As published on finews.asia, Tuesday 25 January, 2022.

Hong Kong’s uber-wealthy are expected to make significant increases in sustainable investment this year, according to a recent survey by a family office association, in line with the city’s green finance ambitions.

85 percent of family offices are expected to increase their allocation to ESG (environmental, social and governance) or impact investing, according to a recent survey by Family Office Association Hong Kong (FOAHK).

Of this group, nearly two-thirds (64 percent) expect an allocation increase of more than 10 percent with the remaining 36 percent planning an allocation increase of over 20 percent.

«We are pleased to see that family offices in Hong Kong are already at the forefront of ESG/impact investing, and increasing the momentum this year with meaningful allocations to make a difference for our future,» said FOAHK chairman Chi Man Kwan.

Despite the optimism, growth in sustainable investments will occur from an understandably low base for the relatively nascent market.

While almost four in five respondents (79 percent) said they allocated assets to ESG or impact investing in 2021, around half (48 percent) have allocated less than 10 percent.

52 percent of respondents allocated 10 percent or more, including 27 percent which have allocated at least 20 percent.

Overall, investments (59 percent) were named as the top priority for family offices in 2022 which coincides with ongoing uncertainty about the region’s markets, most notably China’s tech and property sector.

Other top priorities included family governance (52 percent), tax planning (42 percent), succession planning (39 percent), and digital transformation (38 percent).