A charity with more than £10m of investment should ideally start by applying a responsible investment policy to its investments. Find out more about how to create a policy.
The approach to implementing the policy will depend on whether the money has already been invested or not. If it has not been invested then you can look to appoint an investment manager who you are confident shares your organisation’s values and will implement your policy well. If you already have an investment manager, then you should talk to them first about how they can start incorporating your responsible investment criteria.
With over £10 million in investments your charity may consider adopting a segregated or discretionary approach. This means you can work with your manager to incorporate your chosen positive or negative screens into your portfolio. You may wish to invest in a range of asset classes – such as bonds, property and venture capital as well as equities.
You should take proper investment advice before making investments.
As well as your investments you may wish to consider how social, environmental and ethical issues of concern can be incorporated into your other financial decisions such as banking, pension provision and the companies you partner with.
There are several examples of where large charities have invested their endowments responsibly which might be useful to consider including Esmee Fairbairn, Barrow Cadbury Trust and Friends Provident Foundation.