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.
Tuesday 17, September 2019
Super-rich families are increasingly including sustainability and ethics in founding principles of their private investment firms, reported Bloomberg.
Fabrizio Campelli, Deutsche Bank’s Global Head of Wealth Management, said, “Family offices are now putting environmental, social and governance matter (ESG) in their investment charters.”
There are some family offices in California that cannot invest less than 40 per cent of their assets in ESG, said Campeli.
Assets managed using a broad definition of the approach are said to have reached $30.7 trillion at the start of 2018, about a third more than two years earlier.
According to CB Insights, more family offices are poised to integrate ESG and impact as millennial heirs inherit fortunes. Those born between the early 1980s and mid-1990s are set to take possession of as much as $30 trillion,
In a statement Deutsche Bank said that its wealth-management arm is accelerating its ESG strategy in response to client demand, adding sustainability and ethics ratings to assets and more funds focused on the area.
Germany’s largest lender is shifting resources to wealth management while slashing thousands of trading jobs worldwide.