Global Financial Powerhouse, Hong Kong, Bolsters Status as ESG Integration Rises Dramatically Among 90% of Family Offices
Hong Kong Emerges as Global Hub for Sustainable Investments
In a significant shift, food and agriculture, once the top investment priority, has dropped to second place, with healthcare taking the lead. However, food and agriculture remains a strong contender, followed closely by healthcare, according to recent investment trends.
The Asia-Pacific region, particularly, has become the top investment market for sustainable allocations, with 42% of respondents favouring it. This preference is reflected in the performance of the Hang Seng Index, which has climbed nearly 30% this year, building on an 18% gain last year. As a result, Hong Kong has reclaimed its title as the world's largest IPO market in the first eight months of 2025.
The surge in sustainable investments is not limited to public markets. Family offices worldwide are increasingly incorporating Environmental, Social, and Governance (ESG) strategies into their investments. A staggering 90% of family offices globally are now adopting these strategies.
The commitment to sustainable investments is evident in the allocations. Close to 60% of family offices have committed 10% or more of their holdings to sustainable investments. Among the preferred financial instruments for these investments, private equity holds a 25% share, and direct investments account for 22%.
The Hong Kong family with the highest ESG expenditures is linked to CK Hutchison, a conglomerate engaged in major sustainable investment initiatives. COSCO, a subsidiary of CK Hutchison, is involved in high-value port operations and international logistics investments, facing geopolitical challenges but emphasizing strategic investments likely aligned with sustainability goals. However, the specific natural solutions chosen by this family for their sustainability investment focus are not detailed in the available sources.
The evolving sustainability frameworks in Hong Kong, combined with its deep capital market and transparent ESG disclosure regime, could consolidate its role as a global hub for impact investment. The government's efforts to promote sustainable finance are evident in its official policy and the introduction of tax concessions and streamlined regulatory pathways to strengthen Hong Kong's position as a global family office hub.
The policy environment in Hong Kong is making the city a magnet for ESG-related wealth. Europe and North America each account for 15% of the sustainable investment market, while Latin America and the Middle East each account for 6% and 5%, respectively. Africa follows with 16% as the second most popular region for sustainable investments.
The findings indicate that family offices globally are moving from exploratory allocations to more structured, high-conviction strategies. This shift is reflected in the increasing proportion of family offices with at least half of their portfolios allocated to sustainable assets, with nearly 20% falling into this category.
Family offices often lean towards alternative strategies for their sustainable investments, as they seek greater control and influence over impact outcomes. Nature-based solutions, such as reforestation, wetland restoration, and regenerative agriculture, have become the leading area for family office investment.
Katy Yung, chief executive of SFI, stated that family offices are committed to sustainable investment and are refining their strategies for both social impact and robust returns. The depth of the capital market in Hong Kong offers a ready platform for family offices to support fundraising for ESG projects. The regulatory requirement for all Hong Kong-listed companies to disclose ESG policies has created a more transparent environment for impact investing in the city.
In conclusion, Hong Kong's commitment to sustainable finance and its robust capital market position it as a global hub for family offices seeking to invest in sustainable assets. The city's transparent ESG disclosure regime and evolving sustainability frameworks are attracting ESG-related wealth from around the world.
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