HKUST Business School Magazine

For this reason, family offices are in a perfect position to tailor their impact investments to align with family values, priorities and philanthropic goals, whether those are in clean energy, affordable housing or even education initiatives. Furthermore, impact investing contributes to society in a way that allows the inheritance of family values, which means that it is easier to gain resonance, understanding and support from the younger generation of family members because they are more likely to have received an international education and are willing to participate in socially beneficial work. Yet another reason impact investing is closely related to family offices is that it allows the alignment of family values and leads to greater cohesion within the family. Many high net worth families have a strong desire to make a positive impact on society and address social and environmental challenges. Impact investing allows family offices to align their investment strategies alongside their shared values and missions. By emphasizing both financial returns and social impact, impact investing also enables families to achieve common prosperity and contribute to society. Impact investing provides an opportunity to not only generate financial returns, but also pass on a legacy of social and environmental impact to future generations. By combining investment with social benefit, impact investing creates a powerful synergy that not only generates returns but also contributes to the betterment of society. This tangible impact not only provides a stable source of funding but also fosters a sense of accomplishment among family members and employees. This virtuous cycle also promotes long-lasting inheritance of family reputation and values, inspiring individuals to engage in more altruistic endeavors. According to the HKUST-EY Family Office survey, over 90% of Hong Kong family offices have incorporated impact investing into their overall investment strategies; 5 while one-third of family offices in Greater China are involved in impact investing. Moreover, many family offices have indicated that they will consider impact investing in the foreseeable future. 6 It is predicted that the process of Asian family offices from the initial stage to relative maturity will be significantly shorter than their Western counterparts Insight Biz@HKUST 14