“2021 Global Entrepreneur & Family report”
A comprehensive view of Entrepreneurs and Families shifting attitude toward sustainable investing.
Based on the voices of nearly 1,000 entrepreneurs and multi-generational families holding on average investable assets of more than $17 million and residing in 19 countries across Europe, Asia, the United States and the Middle East, this exclusive report gives a comprehensive view of their shifting attitude toward sustainable investing and their new impact priorities.
INTEREST TOWARD SUSTAINABILITY AND PURPOSE-DRIVEN INVESTING HAS RISEN IN THE COVID-ERA
- For many, COVID-19 was a time of introspection and served as a catalyst for change. As a result, 63% of Entrepreneurs are more willing to consider sustainable investments than they were a year ago.
- Today, 58% Entrepreneurs say they hold some sustainable investments in their portfolios; an increase of almost 25% compared to 2019. Of those who currently have no exposure to sustainable investments, nearly three in five are more open to the idea.
- Boomerpreneurs (55 years and older) are twice as likely now to have exposure to sustainable investments, rising to 67% this year from 34% in 2019; and a similar pattern is seen among Ultrapreneurs (more than $25 million of investable assets), rising to 69% from 39% in 2019.
- Asia emerges as the standout story where the take-up of sustainable investments has jumped to 69% in 2021 from 39% in 2019.
NEW IMPACT PRIORITIES AND EXPECTATIONS TO TAP INTO GROWTH
- The resilience and financial performance of sustainable investments have changed Entrepreneurs views regarding expected returns. 57% of entrepreneurs now believe they can combine sustainable investments with performance, while they were 29% before the pandemic.
- Although climate action remains one of the top United Nations Sustainable Development Goals (UN SDGs), it has been supplanted since the COVID-19 crisis by other goals, including health and wellbeing, and alleviating poverty and inequality. In Europe, access to clean energy and reducing global inequality are cited as the most important goals to pursue (29%).
- Half of Entrepreneurs now expect their wealth managers to
- give them advice on the sustainable investment portfolios. This rises to 60% in the US and 64% in Indonesia or Switzerland.
- provide a rating system to help make sustainable investment selections.
“We see a clear acceleration for sustainable investments in Entrepreneurs and Families’ portfolio with 58% reporting having sustainable investments, jumping up from 47% in 2019! With the support of our experts, our clients are able to align their investment choices with their values. They count on us to accompany them in having a positive impact, and they are looking to do so, both through their businesses and through their investments.”
Vincent Lecomte, CEO of BNP Paribas Wealth Management
“With global cooperation and a range of social and environmental initiatives underway, like COP26 and proposed Green Deals in the US and the European Union, entrepreneurs are actively re-thinking business processes and re-positioning their investment portfolios to amplify impact, particularly around the green recovery.”
Eléonore Bedel, Global Head of SRI & Impact investing, BNP Paribas Wealth Management
Aon’s client Insight team
Owned by Aon plc, Aon’s Client Insight team is a leading insight and strategy consultancy to the global wealth industry. We specialise in understanding ultra/high net worth individuals and the financial institutions with which they interact, sharing our expertise with business leaders to enable them to drive business growth and performance. As a global team of consultants, we have a deep understanding of the challenges facing the wealth management sector and the opportunities for growth. We have a passion for improving client outcomes. Our
core competencies are client engagement studies, thought leadership, brand tracking assessments and strategic consulting. To date, we have collected more than 150,000 individual client responses globally – providing unparalleled insight to the institutions we work with. This research in this report was conducted and written by Aon UK Limited, part of Aon plc. Aon UK Limited is authorised and regulated by the Financial Conduct Authority.