Lack of ethical investment policy by charities

A survey of investment policies of Irish charities undertaken by Montgomery Oppenheim in June and July 2003, highlights a lack of ethical and socially responsible investment by them.

Less than 30% of the charities surveyed have policies on socially responsible investment.

65% of those that responded expressed an interest in learning more about such policies, illustrating an increasing awareness of corporate responsibility and socially responsible investment.

The survey examines the influences of ethical or environmental considerations on Irish charities' investment policies.

It was distributed to 300 Irish charities, of which 74 responded (25%).

Those that responded have a combined total of €500m in investment assets.

The charities ranged from social care and development, education, and religious bodies to medical research.

Results show the two main positive influencing factors in investment decisions of Irish charities are Community Involvement (60%) and Concern for the Environment (50%).

Equal Opportunity, Employee Welfare and the Conservation of Natural Resources follow these, all on 43%.

The negative issues that influence investment decisions by the charities were also investigated with Oppressive Regimes (56%), Armaments (51%) and Damage to the Environment (49%) being the leading ethical concerns.

Nuclear Power (34%), Animal Rights (37%), Gambling (37%) and Tobacco (35%) were also listed as issues.

Of the participating charities, 52% of them have their assets invested with banks, investment managers or directly in shares and bonds, 35% set investment objectives for returns and 30% of charities have performance targets.

Most, 80%, do not employ investment advisers.

Deirdre Clerkin at Montgomery Oppenheim said: "I believe the most interesting finding is that 71% of the respondents do not have a policy on Ethical or Socially Responsible Investment."