Europe’s richest individuals have increasingly turned to sustainable investments to navigate the financial crisis, according to the European Sustainable Investment Forum (Eurosif).1
At a time when their overall wealth has contracted slightly, Eurosif assessed the investments of European high net worth individuals (HNWIs) and their consideration of environmental, social and governance (ESG) issues. It surveyed 420 individuals and bodies such as family offices, wealth managers and private banks between April and June.
Eurosif estimates the 2010 European HNWI sustainable investment market to be worth €729bn, or 11% of the value of European HNWIs’ portfolios, as of 31 December 2009. The market has grown by 35% since 2008. Eurosif predicts the market share will reach 15% by 2013 and be worth almost €1.2trn.
The demand drivers for sustainable investments among HNWIs were found to be responsibility, financial opportunity and the search for sustainable return. Some 94% of wealth managers and 75% of HNWIs said the financial crisis had had a positive impact on the performance of their sustainable investments.