Investment Governance, legal and compliance

CFG calls on Charity Commission to go further on responsible investment

Read our response to the Charity Commission's Responsible Investment Guidance Consultation.

Charity Finance Group (CFG) is calling on the Charity Commission to actively encourage all charities 'to consider a sustainable investment approach.'

Responding to the Charity Commission's consultation on responsible investment guidance, CFG says the Commission must go further in its updated guidance so that charities feel empowered to go beyond 'responsible' investment.

CFG is urging the Commission to update the existing guidance to 'ensure trustees are aware of the potential risks from climate change, and actively encourage them to mitigate these risks in their investments.'

This would mean charities in England and Wales looking to adopt progressive environmental, social and governance practices. The report states:

'Charities are a rich part of society and are increasingly playing their part to enact change which is in the wider public interest. This is an opportunity to empower charities to play a greater role in tackling a crisis impacting the whole of society and to move away from investment in companies who extract rather than add value, and be safe in the knowledge that, not only is this an appropriate use of charity funds, but that it is actively considered to be the right thing for all charities to do in all but exceptional circumstances.'

Read the full consultation response.

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