Bates Wells has joined with CFG and other sector bodies to launch the Charity Investment Governance Principles (CIGP). Following on from the landmark charity investment case of Butler-Sloss in 2022 which set the precedent for charities to consider non-financial factors when making investment decisions, these new principles are aimed at providing greater clarity for trustees and charity leaders around investment duties and decision-making. The first of its kind for the sector, the CIGP will compliment the Charity Commission’s CC14 guidance and Charity Governance code.
Luke Fletcher, Partner in our Charity & Social Enterprise team, advised on the Butler-Sloss case and put forward the idea for the principles following that. Luke has since been supporting CFG as part of the steering group to develop the principles alongside NCVO, WCVA, the Association of Charitable Foundations, the secretariat of the Charities Responsible Investment Network, and expert advisers from across the sector.
Luke commented: “The launch of the Charity Investment Governance Principles marks a significant development for charity investors. The Butler-Sloss judgment provided legal clarity and a sure footing on which to build best practice principles for investment by charities – and now we have them, developed by charities for charities. The Principles provide practical, actionable guidance that empowers trustees and charity leaders to make informed, confident decisions about investments. We are delighted to see the idea of the Principles being taken up and coming to life. The Principles will support trustees to invest well and generate good returns, whilst responding to some of the key challenges of our time, such as climate change.”
Read more about the CIGP here and get to grips with recent Charity Commission guidance on charity investment here.