Listening ear exercise by the Charity Commission on barriers to responsible investment

In 2020 the Charity Commission carried out a listening exercise on the barriers to responsible investment.

‘Responsible investments’ refers to financial investments that align with a charity’s mission and purpose.

The Charity Commission report that trustees are finding it hard to make the best decisions for their charity about longer term investments in these volatile times. Trustees are increasingly considering the factors of environmental sustainability of their investments. The research exercise highlighted that the Charity Commission guidance (CC14) lacks practical advice.

Also some believe the case law is ‘outdated’ and at odds with public expectations of how charities should behave. Details of the exercise can be found here.

On 15 January 2021 the Charity Commission published a press release titled Charity Commission to consult on responsible investment guidance. The Commission plans to publish draft guidance in Spring of this year for a public consultation, supported by a refreshed interpretation of the law in this area. The final updated responsible investments guidance is expected this Summer.

Details of this upcoming consultation can be found here.

The Charity Commission’s existing Charities and investment matters: a guide for trustees (CC14) guidance can be found here.