UK charities can take ethical and other non-financial considerations into account when deciding how to invest their assets. The progress towards ESG considerations has been long, but now is recognised by the Charity Commission as a legal right.

The sector, worth around £60bn in income each year and with investment assets of around £100bn is beginning to take greater care in its financial arrangements.

International development agency, Christian Aid, has now approved plans to move banking provider from Barclays to Lloyds over the former’s involvement in fossil fuel financing.

Barclays was rated as the seventh worst banks for financing fossil fuels globally by the Banking on Chaos report from RAN (Rainforest Action Network) and the highest European bank.

Christian Aid’s COO Martin Birch said: “Whilst Barclays was able to provide banking services to fragile contexts, their record on fossil fuel finance, and their weak commitment to future improvements in this area meant that we had to seek a more suitable provider.”

Christian Aid has been behind the “Rise Up Pay Up” campaign that makes the direct link between pollution, climate change and recent floods and droughts that have helped destroy crops.

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