Responsible and ethical investment

Lankelly Chase aims to invest its endowment to generate financial returns in a way that actively manages the environmental, social and governance (ESG) impact.

Lankelly Chase is a signatory to the Principles for Responsible Investment (PRI). The Principles give guidance on how to incorporate ESG issues into investment practice.

As a signatory of the Principles the trustees agree to:

  • Incorporate ESG issues into investment analysis and decision-making processes
  • Be active owners and incorporate ESG issues into our ownership policies and practices
  • Seek appropriate disclosure on ESG issues by the entities in which we invest
  • Promote acceptance and implementation of the Principles within the investment industry
  • Work together to enhance our effectiveness in implementing the Principles
  • Report on our activities and progress towards implementing the Principles.

In addition, trustees have developed an ethical investment policy to better align our investments with our mission and values and ensure that our investments complement rather than conflict with the Foundation’s charitable objectives.

Trustees have reviewed common ethical investment areas to identify those considered most important for Lankelly Chase’s mission to establish and address the underlying causes of social disadvantage. The Board has agreed that they do not want Lankelly Chase to invest in companies in the UK or globally that earn income (or in some cases not more than 10% of their income) from certain activities including tobacco, gambling, high interest rate lending, pornography, armaments, oppressive regimes, exploitative and predatory lending, poor marketing of breast milk substitutes and energy coal extraction.

Restricting investment in this way may result in a reduction in diversity and a risk of more volatility in the portfolio, so our investment managers are instructed to mitigate that risk wherever possible. The trustees meet regularly with the Foundation’s investment managers and responsible and ethical investment is always on the agenda for these meetings.

As well as applying negative screening (specifying those types of activities where we do not want to invest), Lankelly Chase’s Director of Finance and Investment collaborates with other charitable trusts and foundations, notably through ShareAction and the Charity Responsible Investment Network (CRIN) to influence companies about paying the Living Wage, establishing processes for reviewing their supply chains to prevent modern day slavery, environmental matters and other issues that might affect disadvantaged individuals or groups as well as the long-term sustainability of the business and therefore our investment.