Almost all charity leaders are ‘concerned about the quality of their ethical investment advice’

Almost all senior charity executives are concerned that their investment advisers are able to meet their organisation’s ethical requirements, a survey has revealed.

The survey, of senior executives at charities with at least £1m of investable assets, found that 94% are concerned about their ethical investment advice.

Around half (45%) are ‘very concerned’, while the remaining 49% are ‘quite concerned’.

The survey also found widespread support for having strong environmental, social and corporate governance (ESG) credentials. This was cited by 88% of charity executives, with more than a third 36% describing it as ‘very important’.

Nearly nine out of ten charity leaders believe that the level of importance charities lace on ESG when selecting investments will rise over the next three years, with one in five saying it will become significantly more important.

Nine out of ten executives think that finding investment advisers with strong ESG credentials will become more important by 2024.

The research has been revealed by wealth management firm James Hambro & Partners, which surveyed 100 senior executives at UK based charities between June and July this year. They represent charities that have a combined total of £3bn in investible assets.

“When it comes to their investments, because of the nature of their work, charities perhaps more than other institutional investors often have a greater focus on ethical and ESG issues,” said the firm’s partner and head of charities Nicola Barber.

“They rely heavily on their investment managers to ensure that their investments meet their strict requirements in this area and do not put them at risk of controversy and negative publicity.

“However, our research suggests that some charities have concerns over the ability of investment firms to deliver in this area.”

    Share Story:

Recent Stories


How to elevate your non-profit storytelling with data and performance metrics.
Sage Intacct the non-profit financial management platform, takes a look at giving trends and insights.

What has the pandemic taught us about the public’s perception of charities?
In this episode of the Charity Times Leadership podcast, we take a look at what the pandemic has taught us about the public’s perception of charities. Charity fundraising platform, Enthuse, recently released its quarterly donor research study, which highlighted significant shifts in donor behaviour throughout the duration of the pandemic. Not only does the report highlight an overarching sense of positivity towards the sector, but a propensity for younger generations to give more generously, too. Lauren Weymouth is joined by Enthuse CEO, Chester Mojay-Sinclare to discuss more.

The importance of the ‘S’ in ‘ESG’
In this episode, Lauren Weymouth is joined by Ketan Patel, equities fund manager at EdenTree, to delve into the issue of social investment and why that all-important ‘S’ in ESG is more relevant now than ever before. The social element of ESG often gets forgotten when thinking about investing in more ethical and sustainable ways. But, after a challenging year for all areas of society, social injustice has been highlighted, and there’s a much greater need for charities to put people at the heart of their investment decisions.