New report: The impact sectors family offices are planning to back

Impact Loop has been reporting about family offices – wealthy families that invest their money in companies – that are now looking to invest more in impact firms (read our deep-dive with 25 family offices open to new impact investments here).

[split-article-here]

Now, the new report The European Family Office Report 2024 from the bank HSBC shows that they are looking to invest more into some impact sectors.

These are:

1. Clean tech

Nearly three in five family offices (59%) already hold clean tech investments – and 18% more plan to expand in the year ahead. From sustainable materials to waste-reducing technologies, families are looking to align their portfolios with clean tech solutions.

2. Climate solutions

Another 59% of European family offices say they've already invested in climate-focused businesses, covering everything from carbon capture to new forms of green energy. Now 14% plans to invest even more in this area.

3. Renewable energy

At 57% participation and a net 16% planning to increase, wind, solar, and other renewables remain essential to family offices' impact strategies.

4. Healthcare / Health tech

Already the most common private equity bet (73% of family offices surveyed), health tech is poised for even more capital from family offices, with a net 34% of respondents planning to add to their positions. Many see faster innovation cycles, alongside rising consumer demand, as a solid driver of returns and social impact.

AI and automation beats impact

However, AI and automation beats impact niches when it comes to increased funding. 61% of family offices invest in AI, something they plan to increase by 43%. When it comes to automation and robotics, the numbers are 66% with a planned increase of 41%.

Growing appetite for impact

The report also shows that 51% of European family offices allocate money to so-called "responsible strategies" – above the global average of 40%.

Whilst they currently dedicate around 36% of their assets to ESG-aligned deals, that figure is expected to climb to 46% over the next five years.

Most offices integrate ESG principles (69%), engage in outcome-focused impact investing (69%), or pursue thematic strategies (65%) that reflect causes they care about, especially renewable energy (68%) and climate solutions (64%).