According to experts at Hong Kong’s first Wealth for Good charity summit, the next firm with a billion-dollar value will likely be a start-up that helps the world transition to a net-zero economy via technology.They stated that the city, the fourth-largest capital market in the world, has the financial ecosystem, talent pool, and regulations to attract and cultivate companies that develop sustainable technology (SusTech) to wean the global economy off fossil fuels and transition to zero emissions.
The next unicorn will emerge from technology
Family offices managed by ultrawealthy tycoons are well-placed to nurture these SusTech companies, as they approach these investments with an eye towards doing social good instead of purely chasing returns.
Poman Lo, founding managing partner of the sustainable technology fund AlphaTrio Capital, who moderated a Wealth for Green panel at the summit, said, “The timing is ideal for ESG [environmental, social, and governance] impact investments, [which] should be alpha-generating, not just risk mitigating.” “Family offices may transform these transition concerns into opportunities.
The summit was divided into four panels to debate methods to utilize money for philanthropy, promote the arts, invest in technology, and support ESG as part of the Hong Kong government’s invitation for the world’s billionaires to establish their family offices in the city.
Start-ups that help the world shift into a net-zero economy
Ma Jun, chairman of the Hong Kong Green Finance Association, stated that the city’s unique strengths include an open financial system unrestricted by capital controls, a talent pool with world-class universities and research labs, government support through the Hong Kong Science and Technology Parks, and strong legal protections for intellectual property rights.
Hong Kong offers an abundance of “scenarios” in which green technology or SusTech can be implemented, particularly in construction, transportation, and the circular economy, according to Ma, who also spoke on the Wealth for Green panel.