Hong Kong is positioned to gain as a family office hub and impact investment center as wealthy families increasingly embrace environmental, social and governance (ESG) investments, industry observers said.
A new survey showed ESG investments account for at least half the portfolio of nearly 20% of family offices globally, while 60% of these wealth management entities have allocated at least 10% of their investments to ESG-related projects.
The findings, released by the Hong Kong-based Sustainable Finance Initiative (SFI), suggest family offices – entities established by wealthy families to manage investments, succession planning and philanthropy – are demonstrating “real and genuine commitment to sustainable investment,” said SFI CEO Katy Yung.
“These figures demonstrate that family offices have not only maintained their focus, but have also refined their strategies to capture the twin benefits of social impact and robust returns,” Yung said.
The survey of 144 family office representatives from 15 countries was conducted during SFI’s Impact Summit in Hong Kong in May.
Hong Kong’s status as a financial hub stands to benefit from this trend, according to Tom Chan Pak-lam, permanent honourable president of the Institute of Securities Dealers.
“The Hong Kong government has been promoting both family offices and sustainable investments in the city in recent years,” Chan said, noting that mandatory ESG disclosures by all listed companies make it easier for family offices to identify impact investment targets.
The city’s stock market surge – with the Hang Seng Index up 29% this year following an 18% gain last year – has enhanced its appeal.
Hong Kong also reclaimed its position as the world’s largest initial public offering market in the first eight months of 2025.
Family offices are increasingly prioritizing nature-based solutions such as reforestation and regenerative agriculture, the survey showed. Food and agriculture dropped to second place from last year’s top ranking, while healthcare came third.
The Asia-Pacific region emerged as the preferred investment destination for 42% of family offices, followed by Africa at 16% and Europe and North America at 15% each.
Two-thirds of family offices expect to achieve their sustainable investment goals this year, though 37% anticipate missing their targets.
For ESG investments, family offices favor alternative strategies, with 25% preferring private equity, 22% choosing direct investments, and the remainder using grants and loans, according to the survey.
FamilyOfficeNewsAsia.com
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