The Great Wealth Transfer Pt. 2/3: A Launchpad for Sustainable Investment

Last updated: September 7, 2026.

Quick Answer

The Great Wealth Transfer is moving sustainable investing from a niche preference to a baseline expectation, because the generation inheriting an estimated $83.5 trillion treats values alignment as part of what wealth is for. Younger investors are markedly more likely than their parents to hold ESG as an investment objective, and the research shows this does not cost returns. The constraint for wealth managers is data rather than demand, since reliable ESG metrics are hard to obtain, which is why Aleta builds sustainability reporting into every portfolio view rather than offering it as an add-on.

Key Takeaways

• An estimated $83.5 trillion will transfer to the next generation over the next two decades, with 30% of HNWIs inheriting by 2030 and 84% by 2040 (Capgemini).

• 55% of HNWIs say investing in causes with positive ESG impact is a critical wealth management objective, and in North America the figure is 76% for those under 40 against 46% for those over 40 (Capgemini, 2022).

• 30% of next-generation heirs say they are interested in sustainable and impact investing (UBS).

• Of more than 1,000 studies reviewed, 59% found ESG strategies performed the same as or better than conventional ones, and 14% found worse (NYU Stern).

• Global sustainable funds returned a median 12.5% in the first half of 2025 against 9.2% for traditional funds, then 5.3% against 5.5% in the second half (Morgan Stanley).

• Around 40% of wealth managers say obtaining accurate ESG impact data is complex, which is the gap between demand and delivery (Capgemini, 2022).

Why Is the Next Generation Inheriting a Sustainability Mandate?

As the Great Wealth Transfer picks up pace, with an estimated $83.5 trillion changing hands over the next two decades and 30% of HNWIs inheriting by 2030, priorities are shifting along with the fortunes.

This is the second article in our three-part series about The Great Wealth Transfer.

The digital divide discussed in the first part of this series is paralleled by a 'sustainability divide’, and so, we shift our focus from digitalization to sustainable investment.

The incoming generation of wealth inheritors is inheriting assets and, with them, a sense of responsibility toward the planet and society, and this is increasingly shaping their preferences when it comes to wealth management.

It also has to do with identity. When I meet nextgens, one of the things they’re most preoccupied with is their identity. Their predecessors largely built their identity on their business. But the next generation is inheriting a fortune they didn’t create themselves, and now they have to figure out what they want to build their own identity on and how to make meaning of it all.

What’s common for many of them is that they want to create a long-lasting legacy that’s about more than profit.

In this article, we zoom in on the sustainability trend and its impact on wealth managers, family offices, and advisors.

How Is the Great Wealth Transfer Changing Investment Priorities?

The Great Wealth Transfer is not merely an exchange of wealth but also a transformation in the ideals governing that wealth.

A new wave of investors is set to redefine the priorities of wealth management. Unlike their predecessors, whose investment decisions were often guided by traditional financial metrics alone, the next generation is looking to align their portfolios with their ethical values.

ESG and sustainability are not just buzzwords to these investors.

Globally, 55% of HNWIs told Capgemini's World Wealth Report 2022 that investing in causes with positive ESG impact is a critical wealth management objective, showing that a shift in priorities is already happening.

In North America, 76% of HNWIs under 40 hold ESG as an important investment objective against 46% of those over 40, highlighting a generational shift in investment paradigms.

My guess is those 55% will increase markedly during the following decade.

The newer data points the same way: UBS's Global Next Generation Report 2026 finds 30% of next-gen heirs actively interested in sustainable and impact investing, with more than half saying they want a say in how family wealth is directed.

Why Do Profit and Purpose Go Together?

Sustainable investing is the practice of aligning a portfolio with broader societal values while still pursuing returns. ESG factors influence financial risk and return, which is one reason to use them, and the alignment of capital with purpose is the other.

It’s about ensuring that your green goes to work in ways that are as profitable as they are purposeful. Think of it like choosing a hybrid car over a gas guzzler: it saves on emissions, and it is also a savvy choice given rising fuel prices.

In my opinion, it’s not one or the other. I believe that profit and purpose will go hand in hand in the future because companies have to adjust to the reality we live in to thrive in the long-term. In fact, studies indicate that this is already reality in many cases.

In a 2021 meta-study, NYU Stern Center for Sustainable Business and Rockefeller Asset Management analyzed over 1,000 studies. Among the studies focusing on the relationship between sustainability and performance, 59% indicate that ESG investments yield similar or better results than conventional investment approaches. Only 14% show negative results. (You can read more about this in our article Does ESG investing pay off?).

The most recent fund data agrees: Morgan Stanley found global sustainable funds returned a median 12.5% in the first half of 2025 against 9.2% for traditional funds, then 5.3% against 5.5% in the second half, a small difference in either direction.

What Do Wealth Managers Need to Change?

The binding constraint on sustainable investing is data rather than demand.

Nextgen investors expect their wealth managers and advisors to give them the data and insights they need – including when it comes to sustainability. Nonetheless, approximately 40% of wealth managers told Capgemini in 2022 that obtaining accurate ESG impact data is a complex task, underscoring a significant gap between investor demand and current capabilities.

Approximately 40% of wealth managers report that obtaining accurate ESG impact data is a complex task.

Admitted, it’s not easy to navigate the ESG data jungle, and its often grey on grey, but that doesn’t mean we shouldn’t take on the challenge.

It's key that you find a partner who can deliver quality sustainability metrics to you and your clients, which is what Aleta's sustainability reporting is built to do, placing ESG data alongside financial data in the same portfolio view. Modern wealth platforms are crafted with nextgen expectations in mind, integrating sleek designs with robust functionality. They adopt a broader understanding of wealth and include sustainability metrics in their reporting.

If you don't want to get left behind, you need to think twice before choosing your wealth management software. It’s an important strategic choice that will help determine whether you thrive or dive after the wealth transfer.

By teaming up with modern tech partners, wealth managers can not only meet but exceed the expectations of their future clients when it comes to the digital experience and sustainability insights.

But it’s not only about reporting. Wealth managers must deepen their understanding of sustainable investment opportunities. They must become as fluent in discussing carbon footprints and social equity as they are in discussing bonds and equities.

Wealth managers must become as fluent in discussing carbon footprints and social equity as they are in discussing bonds and equities.

The way I see it, one of the ways to make that happen is to ensure that sustainability becomes an integral part of financial educations. People in the financial world need to learn from the very beginning that risk and return are not the only important parameters to look at.

Many wealth managers and advisors almost get a headache just talking about ESG. But that’s only because they didn’t “grow up with it” and still see it as an add-on.

We have to stop doing that and start considering ESG and sustainability parameters as fundamental in the world of finance. We have to start seeing profit and purpose as interdependent goals and not opposites.

That's also why we've chosen to make sustainability metrics an integral part of all our reporting instead of offering them as an add-on, on the same consolidated platform that was named Best Consolidated Reporting at the WealthBriefing Awards 2026.

How Does Sustainability Redefine Wealth Management?

As this monumental wealth transfer unfolds, it’s clear that the legacy left by the next generation will be measured not just in dollars but in the societal and environmental impact of their investments.

It’s about ensuring that investments aren’t just profitable, but also purposeful.

Sustainable investments create value, and the risk and regulatory benefits come alongside.

From green bonds and sustainable real estate to impact investing that targets specific social issues, the avenues for engaging in meaningful, value-driven investments are expanding. This expansion is not just a trend but a robust pathway to reshaping the financial landscape to be more resilient and responsive to global challenges.

For wealth managers, the message is clear: evolve your practices and pick the right partners or become irrelevant as an estimated $83.5 trillion passes to the next generation.

It seems to me that the rising tide of wealth transfer isn’t just a financial phenomenon but a launchpad for embedding sustainability into the core of wealth management.

Let’s redefine wealth management for a sustainable future.

P.S. Don't forget to read the final part of the series where I share my thoughts on the rise of the trusted advisor.