IEPlus: European HNWIs allocate more than half of portfolio to sustainable investments, Eurosif
High net worth individuals are increasingly allocating their portfolio to sustainable investments, a study on family ofﬁces, HNWIs, wealth managers and private banks by Eurosif has found.
Growth is especially evident among HNWIs who have in the past tested the concept of considering environmental, social and governance (ESG) issues alongside ﬁnancial issues in their investments.
About 25% HNWIs surveyed by the association are allocating more than half of their assets in sustainable investment, up from 12% two years ago. Moreover, 51% of respondents now view sustainable investment as a ﬁnancial discipline, compared to 37% and 33% in 2009 and 2007.
European HNWI’s allocation to sustainable investment rose to € 1.15tr, compared to a 18% increase in overall European HNWI wealth over the same period.
“The most noticeable increase is for the negative screening strategies (normsbased screening and exclusions), but positive screening strategies (best-in-class) and sustainability themed investments have also increased,” the survey found.
Sustainability themed investments are still the most favoured investment tool, and continue to be the most frequently used sustainable investment strategy by HNWIs. The most popular themes are clean energy, water and green technology.