A practical guide to managing climate change risks and opportunities for trustees of charities and endowments
The fiduciary duty of trustees means the risks posed by climate change need to be carefully weighed, and then addressed with capital allocation and engagement.
It also means that trustees must act in the best interests of their beneficiaries to further their charitable objects. By divesting from fossil fuels – reducing exposure to a significant income paying sector of global markets – are trustees failing this duty? To what extent should trustees engage with the companies they invest in and potentially vote in favour of shareholder resolutions?
This short guide for charity trustees unpicks some of the misconceptions around climate change risk, providing practical advice, actions and investment approaches trustees can use in order to fulfil their fiduciary responsibilities.
- Why should we be concerned about climate change?
- Implications for charities' investments
- Fiduciary duty and Charity Commission guidance
- Practical actions to reduce exposure to climate change risk
- An action plan for trustees
How we can help
We help charities and endowments construct investment strategies and pick the right investment funds to both meet their financial objectives and be aligned with their missions.
We help you make important investment decisions, and make sure that your investments are performing as you need them to.
We help you get your investment strategy right to ensure good member outcomes in your DB and DC schemes.
We help our clients understand and implement responsible investment principles.