About three-quarters of the people who answered are most concerned with their own business success or the safety of their own private assets when it comes to sustainable action. The researchers asked 100 wealthy people from German-speaking countries for information. Of those 100, 82 have assets of at least 50 million euros. Also, 111 service providers who work in related fields, such as active banks, asset managers, legal and tax advisors, and multi-family offices, gave them feedback.
The better situation for younger heirs
Sustainability in investment is thus a secondary concern for many wealthy people. UNWHIs who were polled said they want to help protect the limits of the world (50%), create lasting prosperity for society (38%), or make sure that government is run in a responsible way (41%). But these goals are much more common among younger millionaires and billionaires than they are among older millionaires and billionaires. Among all respondents, their own long-term success is definitely the most important aspect of their understanding of sustainability.
Yvonne Brückner, who is the Managing Director and Scientific Director of Resfutura, says that one reason could be that the children are at least the second generation of wealthy people: “They have then been thinking about how to stay successful for a longer time and have, as a result, learned about the idea of sustainability earlier.”
A second possible explanation is: “There are also people who inherit a lot of money who say, “I didn’t make it myself.” I happened to get it. Then I would at least like to use it to help the larger whole grow and improve.”
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Ideology or economics?
However, less than 15% of the service providers state that a majority of their high-net-worth clients are currently actively addressing sustainability issues. Rather, in many places the perception still prevails that sustainability is primarily an ideological rather than an economic issue. The respondents still fear that taking sustainability into account would be at the expense of achievable returns and drastically reduce diversification opportunities.
“The scientific findings, which show beyond doubt that there is no need to fear a worse position, but that there is even the prospect of added value, do not seem to be generally known yet,” explain the authors of the study.
Clarification of economic-added values
The service providers surveyed emphasize, however, that discussions on sustainability based on an impulse from them were mostly open and constructive. About half say that a majority of their high-net-worth clients and customers belong to this group. The service providers of the UHNWIs name several arguments as the key to the positive reaction when approached.
Of particular importance is the explanation of economic added values. These are cited as central by 39% of service providers, while another third see the contribution to transition as the most important argument. About 30% argue that the attractiveness of assets for the next generation increases.
The push for responsibility
“The argumentation with a focus on responsibility, however, initially often leads to reserved reactions,” said Brückner. However, those who already specifically take sustainability into account are usually satisfied with the results. So, when it comes to the business world, every other person says they expect or already see non-monetary added value and 38% say the same thing about economic benefits. At 23%, less than a quarter expect an economic burden.
Brückner expects that more and more UHNWIs will develop sustainability strategies. Also because the younger ones are driving the changeover. In the study, service providers cite the push from heirs for responsibility as the second most common reason why clients want to consider sustainability.
