Climate change:
The investment risks and opportunities


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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.

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What's inside?

  • 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

Our team works with trustees and sponsors of pension schemes to help them maximise their investment returns, while ensuring risk is well managed.

We help employers and trustees design investment strategies that achieve better outcomes for members.

We help you get your investment strategy right to ensure good member outcomes in your DB and DC schemes.

We help you make important investment decisions, and make sure that your investments are performing as you need them to.

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Because focusing on long-term sustainable returns may deliver better financial outcomes.

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