ESG considerations are no longer ‘theory’ or a nice to have. From an investment perspective having a wrongly constituted portfolio could have material implications on value and the spectre of ‘stranded assets’ (e.g the holding of fossil fuel investments) which can’t be sold is a real one. Plainly this is a material consideration for trustees given their fiduciary duties to preserve and enhance the trust fund.
On a practical level going forward it seems likely that we will all have to demonstrate and evidence our carbon footprint and simple actions and tasks in today’s world may become increasingly difficult (e.g. opening bank accounts) for those who are unable to evidence an acceptable carbon footprint.
It is also interesting to note that certain family offices have been at the forefront in terms of implementing change around ESG considerations and impact investing. Private capital is an increasingly powerful voice.
On the softer side of ultra high net worth family dynamics and governance ESG considerations, philanthropy around ESG and views around impact investing have also given second and third generation family members a real voice and a sense of purpose. This has to be welcomed. Trustees and professional advisers need to be aligned.
We support trustees, foundations, family offices and philanthropists seeking to ensure that the structuring and investment of private wealth is positively "impactful" from an environmental and/or social perspective.
We create solutions for clients seeking to incorporate ESG considerations into existing private wealth structures or seeking to establish private wealth structures with ESG, sustainable or impact investment objectives.
We innovate to meet evolving legal and regulatory requirements and help clients respond to such changes.
We understand the interaction between fiduciary duties, good governance and the mitigation of fiduciary risk with the goal of aligning the investment of private wealth with the families' sustainable investment vision.