
Survey shows four out of five consider ESG as part of fiduciary duty, and almost all agree ESG principles are a key consideration for investment priorities
But the focus over the next three years for family offices is on making returns
New global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows family offices are increasingly focusing on the returns from ESG investing as priorities shift.
The study with family office professionals including those working for multi-family offices found almost all (99%) agree ESG principles are a key consideration for family office investment priorities and 80% agree it is part of their fiduciary duty.
There is currently some disagreement about ESG as part of fiduciary duty – around 14% agree ESG is part of fiduciary duty only if it makes returns while another 6% are indifferent or say ESG is not part of a fiduciary duty.
There is also a shift in views over how the focus on ESG principles as part of fiduciary duty will develop over the next three years, according to Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management.
Around 61% say the focus on ESG principles from a fiduciary perspective will only be tenable if ESG investing is making acceptable returns and 19% say the focus on ESG principles is only for reputational purposes.
About one in eight (12%) say they have not had a focus on ESG principles from a fiduciary perspective in the past but that is changing while 8% say it has never been a focus and that will not change.
Amy Collins, Head of Family Office at Ocorian commented: “ESG investing is a core part of family offices investment strategy and in many cases is seen as part of their fiduciary duty.
“However the survey shows that increasingly family offices are assessing ESG investing in the same way as other investment strategies and over the next three years will be focusing on returns much more than possibly, they did in the past.”
Ocorian’s award-winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships founded on a deep understanding of what matters to family office clients. Ocorian's global presence means It can provide bespoke structures and services for international families no matter where they live.