Geneva-headquartered Pictet Wealth Management has conducted a survey examining the changing attitudes to wealth stewardship and influencing change.   

Pictet Wealth Management has released new research revealing that the rising generation sees their businesses as the most significant force for driving change, surpassing traditional philanthropy.

Through workshops with over 150 participants – aged between 18 and 25 in 2024, and all preparing for wealth stewardship – Pictet’s philanthropy team explored the concepts of impact and philanthropy. The findings indicate a potential shift in the focus and the application of wealth towards impact-driven causes.

When asked about the most powerful means they had for exerting influence, 44 per cent of participants felt that the best way of implementing change was through their businesses, 41 per cent through investments, and only 25 per cent by philanthropy. This reflects the younger generation’s view that traditional philanthropy has become outdated, the firm said. Many participants didn’t identify with the title philanthropist, preferring terms like activist, social entrepreneur, social investor, or change maker.

Participants felt that traditional philanthropy often fails to address causes effectively, attempting to solve problems in isolation rather than contributing to long-term change as part of a broader ecosystem.

Shifts in focus
External research indicated that the primary interests of global ultra-high net worth (UHNW) philanthropists are education, religion, healthcare, arts and culture. Climate change and the natural world received less than 2 per cent of global philanthropic funding. However, the priorities of the rising generation invert this picture. For workshop participants, climate change and the natural world are top priorities, followed by inequality and conflict. Topics related to religion and arts/culture barely registered.

Changing motivations
Participants expressed a sense of responsibility for addressing social and environmental issues, fuelled by a general awareness – thanks to data, livestreamed images and stories – of global societal challenges. The emergence of organisations such as Tax Me Now, Resource Generation, and Patriotic Millionaires underscores a desire for greater wealth distribution, the firm continued.

Some participants were discomforted over their multigenerational inheritance, as it was unearned or amassed through industries that conflicted with their values. Blended finance was highly-regarded – using philanthropic capital to unlock the coffers of public and institutional capital and achieve sustainable outcomes, the survey revealed. Impact investing is also gaining traction, with 86 per cent of Millennials interested, driven by a desire for hands-on involvement and a business-minded approach.

But many admitted that this would only account for a small portion of their portfolios. They emphasised the need for ESG criteria in their broader investment strategies, particularly within family foundation assets, where many see mission alignment as an imperative social responsibility. Participants recognised the power of their own voices and their support for activists, but were also conscious of biases that their experiences might have on their decision-making.

“A consensus was clear: more conscientious wealth management and responsible stewardship is needed, with a focus not simply on growing wealth, but on applying it effectively to foster positive change,” Christoph Courth, global head of philanthropy services at Pictet Wealth Management, said. “The future of giving is about creating a holistic and aligned approach across the sphere of influence, with a focus on building a resilient and regenerative economy, redesigning systems where businesses and investments play crucial roles.”