Analysis of the relationship between intergenerational wealth and sustainability

Intergenerational Wealth and Sustainability

A New Era of Wealth: Driven by Purpose 

As the largest intergenerational wealth transfer in history takes place, a profound shift is underway. Millennials and Gen Z, poised to inherit trillions of dollars globally, are reshaping the priorities of wealth management. Their focus? Sustainability and impact.

Research shows that:

 85% of Millennials consider ESG factors when making investment decisions.

 Younger investors are twice as likely to divest from companies with poor environmental or social practices compared to older generations.

For private banks, this shift isn’t just a trend—it’s a transformation. To stay ahead, banks must:

- Adapt Investment Strategies: Align portfolios with themes like renewable energy, circular economies, and social equity.

- Provide Transparent Reporting: Offer clear metrics that demonstrate the impact of investments.

- Facilitate Knowledge Transfer: Equip families with the tools to have meaningful discussions on sustainable investing.

This new generation is redefining the purpose of wealth—not just as a tool for financial returns, but as a force for meaningful, long-term change. Private banks have a unique role to play in guiding these decisions, balancing purpose with profitability.

Are we ready to meet the expectations of this values-driven generation?

Let’s build legacies that are not only financially strong but also sustainable for future generations.