Luke Fletcher, Partner in our Charity team, has been quoted in a recent article by The Guardian following Charity Commission proposals to promote ethical investment by charities.
In the piece, it is stated that charities are being told to invest the money that they hold in reserve into businesses that align with their principles, even if that means that they take a financial hit. It is suggested that this shift is reflective of a growing sensitivity around the climate crisis which extends beyond purely environmental charities, and that the Commission sees this as a change of public mood around the transparency of the voluntary sector.
The article goes on to note that following this, the coalition of voluntary sector groups is seeking a definitive ruling on trustees’ duties in respect of ethical investment.
In response to this, Luke Fletcher has said that “charity trustees do need clearer guidance on their investments, particularly in light of the climate and ecological emergency”. Luke goes on to state that “charities exist to benefit the public, not to advance their own financial interests, and so we think a court needs to clarify what is expected of charity trustees in this new situation”. The rest of Luke’s insights, and further information on this topic, can be found in The Guardian’s article here.