Extracts from Lords proceedings: ESG - July 7
Thursday, 8 July 2021 07:38
Extract from Lords consideration of the Charities Bill Viscount
Chandos (Lab):...For that reason, I deplore the legal action being
taken by a number of trusts and foundations to try to make it
legally required for trusts and foundations to invest in line with
their mission. It should be left to the trustees of each of those
foundations to judge the extremely complex issues around that. One
trust or foundation may have a single focus or objective, say in
the area of climate change. It is...Request free trial
Extract from Lords
consideration of the Charities Bill
(Lab):...For
that reason, I deplore the legal action being taken by a number of
trusts and foundations to try to make it legally required for
trusts and foundations to invest in line with their mission. It
should be left to the trustees of each of those foundations to
judge the extremely complex issues around that. One trust or
foundation may have a single focus or objective, say in the area of
climate change. It is relatively possible to embed that in an
investment policy, and most investors, whether individuals, pension
funds or trusts and foundations, are in any event incorporating
these sorts of ESG and responsible investing criteria.
But making it a legal requirement to align investment with
charitable objectives could make it almost impossible for a trust
or a foundation with diverse objectives to invest without
sacrificing significant financial return, from which the trust or
foundation’s grant-making activities are derived...
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Extract from oral answer
(Lords) on Private Sector: Environment and COP 26
(Con): My Lords,
the increased attention given to climate change in boardrooms is
largely being driven by investor sentiment. Last year, over 100 new
environmental, social and governance funds were launched in Europe
alone. ESG funds happen to be performing
exceptionally well, demonstrating that ethical investing is
profitable investing. Can my noble friend send a clear message to
ESG investors today that the Government
recognise their efforts, that they are welcome and that they will
be supported?
The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy () (Con): I agree
with the points made by my noble friend. The Government’s ambition
is for the UK to be the best place in the world for green and
sustainable investment. ESG funds are a crucial part of this.
The Chancellor used his Mansion House speech on 1 July to announce
a set of ambitious new policies to drive forward this important
agenda.
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