Originally published: WealthBriefing, 18 August 2026
Despite pressure to relax ESG policies in order to achieve higher returns, a new study from UK wealth manager Rathbones shows that charities are sticking to their ESG investment principles.
Although fears have been increasing about an ESG backlash, a new Rathbones study shows that UK charities are committed to being true to their values. ESG investing is central to this, as demonstrated by their plans to toughen up exclusion lists.
According to the survey, two out of three respondents believe that investment exclusion policies will become stricter over the next two years.
The survey of senior executives at charities with a collective £5 billion ($6.8 billion) of equity investments found that 86 per cent of respondents believe it is important that investments have strong ESG credentials, while 89 per cent said the importance of ESG will increase over the next three years. That includes 22 per cent who said ESG will become significantly more important when considering investments.
The ESG stance is being maintained, the wealth manager said, despite 76 per cent of charities reporting that they are coming under pressure to relax ESG policies in order to deliver higher returns needed to maintain services.
Rathbones Group commissioned independent research agency Pureprofile to conduct the survey. It interviewed 100 senior charity executives, including board directors, finance directors, investment managers and investment directors during July 2026.
“It is clear that charities are sticking to their guns on ESG investing despite growing talk about an ESG backlash or the need to compromise ESG principles in order to achieve higher returns,” Kate Elliot, head of Responsible Investment Centre of Excellence, Rathbones, said.
“Charities are very much committed to delivering on their values, and ESG investing is central to that as demonstrated by their plans to toughen up exclusion lists and to work with investment advisors that can meet their ethical standards,” she continued. “It is not a regulatory box-ticking issue for charities but central to their mission and purpose, helping them align their investments with the causes and communities they exist to support.”
