Hong Kong’s family offices need to be aware of risks as they invest more in environmental, socially beneficial projects, experts say

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The younger generation of the family businesses are more willing to invest in projects that can help crack down on pollution or have a positive impact on society, according to a survey by PwC

There is a risk of conflict when family members have different views of what environmental, social and corporate governance (ESG) projects to back

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Sixty-seven per cent of mainland family business executives have developed sustainability strategies as part of their business decisions. Photo: Shutterstock

Enoch Yiu

Published: 11:30am, 29 May 2021Updated: 10:22pm, 29 May 2021

Family businesses in Hong Kong are increasingly keen to invest in projects that have strong environmental, social and corporate governance (ESG). But they must have a proper governance structure of their own in place to manage the risks and avoid conflict between family members, analysts said.

The younger generation of the family businesses are more willing to invest in projects that can help crack down on pollution or have a positive impact on society, according to a survey by PwC last week.

Sixty-seven per cent of mainland family business executives have developed sustainability strategies as part of their business decisions, while 39 per cent of Hong Kong family business executives have done so. Both are higher than the global average of 37 per cent..

The survey, conducted every two years, polled more than 2,800 family businesses in 87 markets towards the end of last year.

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The demand for a solid governance mechanism has increased as the pandemic has raised more awareness of ESG investment, said Kwan Chi-man, founder and chief executive of Raffles Family Office.