Wealthy Individuals Turning to Sustainable Investments – Report

High net worth individuals (HNWIs) are increasingly turning to
investments with sustainability criteria, according to a new report.

European HNWIs are expected to increase their levels of sustainable
investments from 8% to 12% by 2012, surpassing the €1 trillion mark,
according to the European Sustainable Investment Forum (Eurosif), which
released the report.

The sustainable investment strategy most often employed among
HNWIs is thematic investment, with clean energy and water as their preferred sustainable themes.

There are three drivers in the intersection of HNWIs and sustainable investing that will lead to future
growth of the SRI market in the coming years, the report states.

1. The amount of wealth available for investing by this group is at an all time high and projected
   to expand further.
2. The demand for ‘sustainability criteria’ as an offering within this sector is growing largely due
   to a generational shift in thinking about capital growth and preservation as well as financial out-performance prospects.
3. HNWIs have transitioned from only doing philanthropy to increasingly integrating
   sustainability criteria in their actual investments, reflecting a growing consensus that financial
   returns are consistent with sustainability issues.

Andreas Knörzer, Managing Director of the Sustainable Investment
business unit at Bank Sarasin, one of the sponsors of the report, said,
"The results of the study clearly show that wealthy investors are at
the heart of sustainable investment. Investment strategies of High Net
Worth Individuals are not part of the problem, but creating paths
towards the solution."

The market is currently in an early, high growth phase with 72% of respondents seeing an increase in
HNWI interest for sustainable investment in the last 12 months, principally driven by market demand.

In
spite of the recent market turmoil, 87% of respondents think the interest for sustainable investments will
grow in the next three years. Moreover, 75% of surveyed family offices think that sustainable
investment will increase in the generational transfer of their family’s wealth.

Tom Brown, European Head of Investment Management at KPMG states, "Ultimately, the international
High Net Worth market is likely to provide a significant source of private sector capital to complement
public sector funding of sustainability focused industries, products, services and business practices."

Eurosif
executive director Matt Christensen says "Servicing the HNWI segment offers great opportunities for
product innovation, which could eventually prove useful for other investor segments such as institutional
investors."