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

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%).