Family offices respond to shifting fiduciary landscape

A recent report by Ocorian, a global provider of services to high-net-worth individuals and family offices, highlights the growing significance of Environmental, Social, and Governance (ESG) principles within the realm of family offices.

The study reveals that family office professionals are expected to sharpen their focus on ESG in the next three years, with an overwhelming majority recognising ESG as an integral part of their fiduciary duty. According to the survey by Ocorian, 88% of respondents believe that ESG will become a more prominent element of fiduciary duty in the coming years, with an overwhelming 91% agreeing that ESG principles are an essential part of a family office’s fiduciary responsibilities.

Younger generation shift investment priorities

The research indicates that 93% of family office professionals consider ESG principles to be a ‘crucial consideration’ when determining their investment priorities. Nearly 40% of participants expect a significant increase in the importance placed on ESG principles, while only 1% believe it will become less important. This shift signifies a broader recognition within the industry of the potential long-term benefits, as well as risk prevention and opportunities associated with sustainable investing practices. 

This trend is the growing influence of younger generations, with these generations demonstrating a greater alignment with sustainable investing practices. Their ideas and values are shaping the direction of family offices globally, especially amid the vast wealth transition.

ESG investing as the ‘norm’

Patti Dolan, a senior wealth advisor and portfolio manager, predicts that ESG investing will become the norm within the next decade. Dolan has been involved in responsible investing for almost 30 years, and has witnessed a remarkable acceleration in the adoption of ESG principles, based on his experience, she believes that ESG investing will soon become the standard approach, rather than a niche strategy. 

Dolan highlights the importance of integrating ESG considerations into financial analysis and predicts that research reports will increasingly include ESG factors. As a result, highlighting how the inclusion of social and environmental factors, can increase resilience during times of market volatility and

These findings indicate a clear shift toward embracing sustainable investing practices within the next three years, especially as it further integrates as a core aspect of fiduciary duty. With the rising influence of younger generations and increasing demand from clients, the adoption of ESG investing is expected to become more prevalent in family offices. As the industry recognises the potential benefits and long-term value associated with ESG principles, the integration of sustainable practices is becoming an essential aspect of investment strategies.


About the author:

Georgina Murrin is a ESG Analyst in Itriom’s London Office.

About Itriom

Itriom is the global impact platform helping leading families shape a better world.  Itriom’s platform enables families to refresh and redesign their values, aligns them with the right UN Sustainable Development Goals, combining them in an agreed purpose and a Family Impact Charter.  Itriom’s platform supports the development of impact initiatives and whilst providing discrete and secure spaces for peer-to-peer messaging and collaboration. Itriom’s core practices in Leadership, Geostrategy, and Sustainability benefit clients by developing strategies to engage and support the Next Generation in building a lasting legacy of which families can be proud. 

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Alizah Beg

ESG Consultant

Alizah is an ESG Consultant and researcher. She supports Itriom developing sustainability related products and services, helping our clients identify potential opportunities for creating positive environmental, social and sustainable impact.

Georgina Murrin

ESG Analyst

Georgie is an ESG Analyst and researcher. She researches trends, develops insights and reports, and writes insight articles on sustainability and ESG related topics to ensure Itriom’s clients are up to date on the latest policy, progress and initiatives to inform the platform and help our clients maximise their positive impact.

Tim Boughton

Senior Partner
Practice Leader – Leadership & Resilience

Renowned family office thought leader, Tim works with UHNW families to ensure they are fully equipped to deliver their legacies inter-generationally and effectively.

Dr. Herb Castillo

Associate Partner
Practice Leader – Sustainability

Dr. Herb creates methodologies and frameworks for managing, measuring and assessing sustainability performance. His work identifies where maximum impact can be made.

Simon Hulland-Lucas

Senior Partner
Practice Leader – Geostrategy

Simon harnesses research, liaison and networks globally to identify opportunities for Itriom, building the knowledge needed to deliver intergeneration legacies for UHNW families.

Matthew Millard-Beer

Managing Partner
Practice Leader – Strategy

Matthew is Founder & CEO of Itriom, providing solutions and a global platform for Ultra High Net Worth Principals and their families to engage in unifying purpose, enduring legacy, and sustainable impact.