Impact investing, ethical investing and climate change concerns
are increasingly part of the conversation when considering
investments and, as investment trends, they are now having an
impact on trustee decision-making.
Requests by beneficiaries that factors such as climate change be
taken into consideration, or that certain industries be excluded
because of their environmental impact, when investing a trust's
assets can bring challenges for trustees.
While it is relatively straight forward to include investment
parameters when establishing a trust, the issues are more difficult
when the trust is already established and trustees have full
investment powers.
Trustees have a duty to act prudently, with appropriate skill
and care and in the interests of beneficiaries when considering
investments. They need to ensure that they are not influenced by
their own moral considerations; but how should they deal with
beneficiaries' moral considerations?
