Why impact is not yet a priority in investments, but it will be

In recent years, the topic of socio-environmental impact has gained increasing prominence in discussions about investments and philanthropy. Companies, high-net-worth families and even financial institutions are beginning to realize the importance of directing resources not only to obtain financial returns, but also to generate positive changes in society and the environment. 

In Brazil, high-net-worth families play a crucial role in this scenario. With an estimated capital volume of more than R$ 3 trillion, they have a significant capacity to influence not only financial markets, but also social and environmental behaviors. Therefore, its investment and philanthropy practices have an impact that goes far beyond its own resources. 

The definition of impact investment focuses on investments with positive socio-environmental objectives and expected financial returns. Although investment allocation currently prioritizes financial return, there is a growing tendency to change this pattern. 

In the High Net Worth Families in Brazil - Impact Investing and Philanthropy survey, carried out by Sitawi, we discovered that over a period of 1 to 3 years, the sustainable approach is expected to be the main one, followed by the finance-first approach, indicating a optimistic view regarding opportunities in this field. In the graph below, each point represents the choice of a respondent who participated in the survey about an allocation movement in each approach. The gray arrows are proportional to the intensity and direction of allocation in each approach.

During the research, we also discovered that, 58% from Single Family Offices expressed a desire to increase the impact of their philanthropic activities, recognizing the synergies possible with their impact investing portfolios. While practical considerations such as tax benefits, efficiency and family mandate were mentioned by a minority, it is clear that awareness of impact is growing among high net worth investors. 

If you want to learn more about investment trends among high net worth individuals and how they can influence their financial decisions, be sure to read the full survey. Access now and be prepared for the future of impact investments. 


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