Family Offices Lead the Charge in Sustainable Finance Amidst Global Uncertainty

In a world increasingly defined by political instability and financial uncertainty, family offices are stepping up to the sustainable finance plate with remarkable resolve. A recent survey of 144 family office representatives from around the world reveals a growing commitment to investments that drive both social impact and financial returns.

The findings are striking: over 90% of respondents have allocated a portion of their portfolios to sustainable investments. Even more encouraging is that nearly six in ten (57%) dedicate at least 10% of their portfolios to impact-driven opportunities, while almost one in five (17%) allocate more than half of their portfolios to sustainability-focused initiatives.

Katy Yung, CEO of Sustainable Finance Initiative, sees this as a turning point. “These results show real and genuine commitment to sustainable investment. Our survey in 2024 showed promise, but this year’s data underscores how family offices have not only maintained their focus, but also refined their strategies to achieve both social impact and robust returns. Our community's resilience exemplifies the forward‐thinking approach that continues to drive this sector."

Balancing Impact and Financial Returns

The primary drivers behind family offices’ commitment to impact investing have also remained constant. Family offices continue to prioritise addressing sustainable development challenges and support ventures that are pushing for impactful change. Nevertheless, the pursuit of attractive financial returns remains amongst their top three considerations, and is becoming increasingly significant, underscoring the growing belief that sustainability and profitability are not only compatible but mutually reinforcing. 

Portfolio performance data further validates this trend, with a majority of respondents reporting that their sustainable investments had met or exceeded benchmark expectations. This alignment of financial performance with impactful change reinforces the viability of pursuing dual objectives in investment strategies.

The Pivot to Asia Pacific

Geography is another area where the sands are shifting. The latest data reveals that Asia Pacific continues to be a top priority, with 42% of all votes ranking the region as their primary area of investment. This distinct regional focus reflects both the unique opportunities in the area, as well as the urgency of addressing environmental and societal challenges through targeted impact finance – and family offices are rising to the occasion.

Nature-Based Solutions Take Center Stage

Thematic priorities are also evolving. Whilst food and agriculture, circularity, and healthcare were last year’s top investment themes, this year’s survey highlights nature-based solutions, biodiversity, and regenerative practices as the leading areas of interest.

This shift reflects a growing recognition of the power of natural regeneration—not just as a tool for securing long-term societal benefits—but also as a cost-effective and accessible solution to climate change. That food security and healthcare remain high priorities illustrates the holistic approach capital owners are adopting in their investment strategies.

A Preference for Alternatives

When it comes to asset allocation, family offices continue to lean towards alternative investment strategies. Venture capital and private equity lead the pack, with 25% of respondents choosing these strategies. Direct investment into ventures follows closely behind at 22%.

This preference underlines the entrepreneurial spirit that drives many family offices. By backing ventures directly, they not only fuel innovation, but also ensure that their capital is deployed in ways that align with their vision for a sustainable future.

A Maturing Investment Approach

As Katy Yung notes, the latest survey results reflect “the dynamism and determination of family offices in Asia Pacific.” The evolution in geographic focus, thematic priorities, and asset allocation speaks to a maturing investment approach that marries societal impact with financial rigour.

Looking ahead to 2026, these trends suggest family offices will continue to play a pivotal role in driving positive change. By aligning their resources with the twin goals of profitability and purpose, they are setting a powerful example for the broader investment community.

For those who question whether private capital can be a force for good, the message is clear: not only is it possible, but it’s well underway. Family offices are blazing a trail, and the world should take note.