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With ESG an increasingly pressing concern, charities need to be ethically sound to ensure they survive into the future.

Last updated: 19 Jun 2020

8 min read

• Charities are expected to actively promote environmental, social and corporate governance (ESG)
• This extends to ensuring that investments align with the values of the charity and its supporters
• The impact of coronavirus will cost UK charities an estimated £4bn in three months

It’s estimated that the coronavirus crisis will cost charities in the UK as much as £4bn in the 12 weeks to mid June. While the government’s pledge of a £750m pot to support charities will help many continue their vital work in the short term, voluntary organisations need to work harder than ever to ensure their sustainability in the years to come.

As well as donations, grants and other sources of income, one of the most effective ways for charities to fund their work is through investments. This can maximise charities’ funds over the long term and generate a regular income to support and expand their activities. 

Charities’ investments depend on their objectives and needs, whether that’s immediate access to funds, longer-term spending commitments or funds for emergencies. Many investments, especially by charitable foundations, are endowed funds that have been donated to support a specific cause over the long term. Charities can also opt for programme-related investment, which supports the delivery of a charitable purpose as well as offering a possible financial return. 

But even setting aside the issue of coronavirus (if such a thing is possible), charities are coming under increasing scrutiny from supporters, grants bodies and other stakeholders to invest in companies that promote responsible environmental, social and corporate governance (ESG). This enables charities to practically support the planet and its people (and be seen by supporters to do so) and provides an effective measure of the invested company’s own sustainability and ability to continue to provide a sound return for years to come.

“Our investments are absolutely vital to the conservation work we do,” says National Trust director-general Hilary McGrady, “but they have to be aligned to our mission to protect special places forever.”

Last summer the trust announced a more ESG-focused investment strategy after the press reported its portfolio included fossil-fuel companies – which surprised and angered many donors to a charity with a commitment to conservation and preservation.

“None of us liked reading those headlines,” McGrady told supporters. “We hear your feedback loud and clear and will stop investing in fossil-fuel companies.”

The National Trust had actually been reducing such investments for a while, with a previous policy that forbade it from putting money into companies that derived more than 10% of their turnover from the extraction of thermal coal or oil. In practice, before the announcement, only 4% of its indirect investments were in fossil fuels – but the ire of the trust’s supporters, and its potential implications, was sufficient to reduce that to zero.

“We are a conservation organisation and so are rightly held to account about the environmental impact of everything we do,” admitted McGrady. “We know this is a complex issue and we are learning, along with the rest of the world.”

Changing public sentiment

Everyone wants a greener world, and public and government commitments to tackle climate change have changed immeasurably over the past five years. But there is an inevitable debate about whether charities have an obligation and moral duty to try to get as much financial return on their investments as possible, or back greener, more ethically sound companies, even if that means a significant drop in that return.

Current guidance from the Charity Commission (which was last updated in 2016) is that “the purposes of the trust will be best served by the trustees seeking to obtain therefrom the maximum return, whether by way of income or capital growth, consistent with commercial prudence” rather than trying to conform to “a supposedly homogenous ‘public opinion’.” It does allow charities to invest ethically, but suggests this can only be justified if the invested business doesn’t conflict with the charity’s aims, such investment doesn’t alienate supporters or beneficiaries, or “there is no significant financial detriment”.

But many charities are calling for a clearer legal ruling that more clearly reflects the public’s increasing expectation of responsibility to the planet. A coalition of 20 charitable organisations, including the 14,000-member National Council for Voluntary Organisations, recently asked the attorney general and the Charity Commission for England and Wales for a legal ruling on whether “the public benefit of charities means they should be required to align their investment policies with their own objectives and commitments to wider society”.

Sian Ferguson, who represents three Sainsbury Family Charitable Trusts that backed the campaign, and have recently taken their £100m investments out of fossil fuels, said: “The trustees were frustrated that the advice they were given suggested they didn’t need to think about where their investments were and should just concentrate on giving. That didn’t make sense because some of their investments were causing the problems they were trying to solve.”

The case for a cultural shift

Charities wanting to be seen as promoting sustainability may need to do more than just look at their investments. A recent report claimed that, of the UK’s largest fundraising charities, just three – Cancer Research UK, Oxfam GB and the Royal National Lifeboat Institution (RNLI) – had publicly available corporate responsibility (CR) policies, only 10 had a named sustainability lead and just 13 had an employee whose role involved CR.

Matching Method to Mission, published by social change PR agency Forster Communications, concluded after examining the charities’ annual reports, websites and LinkedIn profiles that “clearly the disciplines of sustainability and corporate responsibility have barely made a dent in the cultures of the UK’s largest charities”.

The report added: “Whether it’s not being more inclusive in their hiring, not paying a living wage or using suppliers that are flagrantly contributing to climate change, those day-to-day decisions have huge knock-on effects. They mean the charity is not meeting the public’s expectations.”

Katie Buchanan, head of sustainability at Virgin Media, warned in the report that charities that remained behind the curve risked alienating potential business partners with a focus on corporate social responsibility (CSR). “Social sector organisations need to give the same attention [as CSR-focused businesses] to how they conduct themselves, otherwise they may find it difficult, if not impossible, to find progressive businesses to build long-term, sustainable and productive partnerships. Ultimately, charities don’t have a monopoly on creating social change and businesses may choose to take on a social issue without them.”

“Our investments are absolutely vital to the conservation work we do, but they have to be aligned to our mission to protect special places forever” Hilary McGrady, director-general, National Trust  

At the RNLI, sustainability manager Anna Frizzell says: “We are working hard to fully integrate sustainable principles and ways of working so we can save lives at sea indefinitely. We already have a really positive impact on many people and communities, but it’s how we do this that makes a difference to the future of our service.”

The institution’s sustainability plan sets out short-, medium- and long-term goals against local, national and global issues. It includes: protecting the environment through maximising energy and fuel efficiency, using renewable technologies and eliminating waste (it has ditched plastic and recycles all its life jackets); creating, developing and protecting a diverse workforce through a range of initiatives and policies, improving the safety and physical and mental well-being of its staff and volunteers; and a commitment through its supply chain to eliminate modern slavery and human trafficking.

“We’re always looking for more solutions to make the RNLI more sustainable,” says Frizzell. “We’re absolutely committed to ensuring our supporters’ donations are spent wisely.”

Unsurprisingly, the RNLI also ensures its investments are ethical in terms of ESG policies – it constantly monitors the managers of its active funds, who are all signed up to the UN’s Principles of Responsible Investment. And, although the charity says it cannot influence the investment managers’ individual discretion, the RNLI would have no hesitation “to withdraw from any pooled fund if we identified an investment that conflicted with our charitable objectives”.

Investing in values

In response to the coalition’s call, the Charity Commission published a blog – its preferred method of communication – in January, asking for organisations’ views on how the balance might be achieved. It did, however, say “it will always be for trustees to decide what is right in their specific case, and what that means in practice will vary between different charities… What is of principal concern to supporters of a health charity will differ to that of a conservation charity, and the balancing act will play out in different ways…. what is ethical may not always be universally accepted.”

But it says charities need to look at a raft of different ethical responsibility measures. “This is not solely about climate change,” said the blog. “A range of social and other issues, such as human rights records or treatment of workforce, may need to be considered if a charity is to live out its values.”

The Divorce, Dissolution and Separation Bill has concluded its journey through the Parliamentary process and should receive Royal assent shortly. Indications suggest that the new rules could be ready to be implemented from the Autumn of 2021. Time will be needed to draw up the new rules and create new forms, for example.

Hatch Brenner Head of Family Law and specialist Divorce Solicitor Richard Dilks comments:

“The introduction of a No Fault Divorce/Dissolution process will be welcomed by many. The current process requires one party to point the finger of blame or wait for a minimum of two years before commencing proceedings on the basis of two years separation with consent. Having to point the finger of blame can inflame an already difficult situation for both parties and hinder discussions in relation to the arrangements for any children of the family or their financial arrangements. For those who don’t want to wait for two years but want to separate amicably, they are forced to spend time and money negotiating over the wording of unreasonable behaviour that will be sufficient to evidence the breakdown of the relationship but which will not create unwelcome dispute during an already difficult time.

“Under the new rules, irretrievable breakdown of the relationship will remain the basis for the proceedings but it will no longer be necessary to provide evidence of conduct – so no longer necessary to point the finger of blame. Couples who want to separate amicably will be able to do so without having to wait for two years.

“Concerns have been raised that the new rules will lead to an increase in divorce or civil partnership dissolution proceedings as it will in some way be easier to end the relationship. However, the ending of a relationship is a significant event which happens for many different reasons and which often has an emotional and financial impact on those involved. If the new rules remove a potential area of conflict then, in this writers’ opinion, they should be welcomed.”

If you would like to speak to Richard about your own personal situation, you can contact him at richarddilks@hatchbrenner.co.uk, or call 01603 660 811.

A group of nineteen of Norfolk & Suffolk’s most-loved performance venues have come together to assess the devastating impact caused by the COVID-19 crisis and shutdown and collectively call on local, regional and national government to support a specific sector intervention for venues.

Every year these venues entertain and engage over 1 million people with a huge variety of gigs, concerts and performances as well as workshops and participatory activities for people of all ages. The region’s venues are also major economic players, collectively generating £43.5m in income in the 2018/19 financial year and directly sustaining over 500 full-time equivalent jobs.

The venues are: Dance East, Ipswich; Diss Cornhall; Eastern Angles Theatre Company, Ipswich; Fisher Theatre, Bungay; Maddermarket Theatre, Norwich; Marina Theatre, Lowestoft; National Centre for Writing, Norwich; New Wolsey Theatre, Ipswich; Norwich Arts Centre; Norwich Puppet Theatre; Norwich Theatre; Quay Theatre, Sudbury; Seagull Theatre, Lowestoft; Sheringham Little Theatre; Snape Maltings; St George’s Theatre, Great Yarmouth; The Garage, Norwich; Theatre Royal, Bury St Edmunds and Wells Maltings, Wells-next-the-Sea.

Since the closure of these venues in mid-March, 1,605 performances have been caused to cancel and just 700 have been able to be re-scheduled. This has resulted in the venues projecting a total collective loss of income until the end of September 2020 in excess of £15million.

The impact survey and analysis was undertaken as part of the work of the New Anglia Culture Board and its chair, Helen Wilson, said: “The cultural sector is a vital part of both the social and economic fabric of our region and our performance venues are at the heart of that. The interventions so far have been very important, but are clearly not enough. A strong cultural sector coming out of this crisis is critical to our region’s recovery and regrowth as a key contributor to the visitor economy sector, the second largest employment sector in the region.”

The government’s Coronavirus Job Retention Scheme has been a lifeline for the venues with almost 700 people currently on furlough leave from the venues’ workforces and an anticipated drawdown from the scheme of c. £3.6milion across the venues by the end of September 2020. However, due to the nature of these buildings and organisations, the venues still collectively carry £2.5million of unavoidable staff costs over the same period associated with continuing to safely maintain buildings, process refunds and exchanges for customers and plan for the speedy re-opening of venues.

The venues have also been able to benefit from other government initiatives including £365,000 from the Retail, Hospitality & Leisure Business Grants scheme and £215,069 in support to the venues from Business Rates relief. The Emergency Funding Packages from Arts Council England have also seen £283,540 of additional support come into the region for the venues to date.

The incredible generosity and loyalty of theatre, concert and gig lovers from across the region and beyond has seen an incredible £420,000 of support reach the venues, particularly through donations in lieu of refunds as well as responses to direct appeals for support.

To date, the total value of government interventions to the region’s venues until the end of September and their own fundraising efforts is estimated at £4.8million leaving a huge gap of £10.5million in their collective finances over the period.

The lack of certainty around viability of re-opening and the ending of the Coronavirus Job Retention Scheme in October is likely to see venues’ losses further increase significantly and many will cease to be financially viable before the end of 2020.

The venues are now collectively calling on local, regional and national government to support a specific sector intervention for venues, which are likely to be the last business to be able to open at full scale operation.

The venues fear that it will take time for attendance levels to return to pre-shutdown levels and, if current social distancing restrictions remain in place until the end of 2020 and there is no sector-specific intervention, 85% will be forced to make major and potentially devastating organisational changes in order to still be financially viable at the end of October 2020 when the Coronavirus Job Retention Scheme runs out.

If the venues are not able to stage their Christmas seasons, 15% will have no choice but to close permanently by January 1st and if there is a prolonged period of closure, 50% will close by 1st April 2021.

The safety of their staff, volunteers and visitors remains the primary consideration for all venues and many venues will need additional financial support in order to make them COVID-secure if they are able to re-open in the short term. 85% of venues remain unsure whether they will be able to re-open their bars, cafes and retail spaces in early July with many only able to re-open in a limited way and 15% unable to open any parts of their buildings at all whilst social distancing measures remain in place.

On behalf of the venues, Stephen Crocker, Chief Executive of Norwich Theatre said: “Our region’s venues are at the heart of life across Norfolk and Suffolk and make these counties the incredible places that they are but the risk to their future is stark. What we do goes way beyond the act of staging performances or delivering activities, it is about bringing people together to share in an experience. In a post-Coronavirus world when social distancing is a thing of the past, I cannot imagine something more important than this. It is clear we need further interventions and this comes at a cost, but the value of the role we have to play as we recover is inestimable.”

Norfolk County Council has produced a toolkit for supporting businesses when re-opening premises after the closure restrictions. 

This month, Method Marketing asked its audience to share its top marketing tools on social media. They shared the platforms they can’t live without, their secret weapons and their unsung heroes.

Scroll down to find out about their faves…

Tomas Hinz

One that I have found super useful over the past year is a Google Chrome extension called Keywords Everywhere. It has loads of features but I use it specifically for longtail keyword research. On a SERP, the tool lists lots of other related keywords that you can grab and use as you wish!

Kelly Cookson, From Spam to Wham!

I’d say ConvertKit. I use it for setting up all my email automations to nurture my list. It’s just not possible to do that stuff manually!

Once you get people subscribed, it’s crucial that you create a welcome series of emails to help them get to know you. ConvertKit has been great for doing that and sending out my weekly email broadcast.

Read more: Best Marketing Advice

Kate Smoothy, WebHive Digital

Pinterest! It isn’t social media, it’s a search engine. The average pin has a lifespan that is 1600 times longer than a Facebook or Instagram post. You can share your content on there and still receive traffic/sales months down the line! If you’re not on Pinterest – get on it now!

Rebecca Broad

Buffer, for sure. It’s simple to use, well-designed, and in my experience is the most reliable of all the scheduling tools. All of my social media clients use it.

Lucy Mowatt, Method Marketing

My favourite tool is IFTTT. I’ve been using it for years to automate various repetitive tasks. For instance, I use it to natively share social media posts across multiple platforms. It saves a lot of time!

What are your favourite marketing tools? What should be on the list? Tell Method Marketing on LinkedIn!

The May NatWest UK Small Business PMI pointed to an improvement in business activity since April, with the downturn in private sector output levelling out from the record pace reported at the peak of the coronavirus outbreak. 

However, small businesses continued to experience a severe shortfall of new work in May and reported widespread business closures across their supply chains, despite a boost as some parts of the UK economy began to reopen with social-distancing measures. While employment trends among small businesses appeared more resilient than in other areas of the economy, a reliance on the government’s furlough scheme was widely cited as helping limit redundancies.

“The data and economic findings in this report help build the picture of why it’s so important to stand behind our small businesses and help them through the difficulties,” said Andrew Harrison, head of Business Banking at NatWest. 

Stephen Blackman, NatWest’s principle economist, added: “The slight uptick in May’s Small Business PMI tells us that, at least, the worst should be behind us.

“The pandemic’s longer-term and wider impacts depend, in large part, on the scale of permanent job losses as businesses operations and models adapt to new rules, behaviours and options.”

The full report is available to read below

With summer 2020 shaping up like no other, BDH Tullford is helping its clients find innovative solutions to unique challenges.

The Norwich-based company was recently contacted by Kelly’s of Cornwall, part of the Froneri group, which was seeking a way to support small shops and confectioners post-lockdown. 

Due to social distancing measures, small outlets can only accommodate one or two people at a time, which is unfortunate if you want to buy treats for the whole family. Customers may be put off buying cones if they have to dash in and out of the store to deliver ice-creams before they melt.

Rising to the challenge, BDH Tullford developed a cone carrier, which allows customers to carry several ice-creams at once.

Designed to compliment our countertop ice-cream holders, which are distributed to companies across Europe, they’re lightweight and easy to use. 

The server simply places the carrier over the holder, before putting cones in the slots and stepping away, leaving the customer to lift the carrier by the handles and distribute the ice-creams outside. 

Not only is it ideal for social distancing, but it’s:

• Cost-effective

• Fully branded

• Recyclable

• Flatpack

• Light​

Needless to say, Kelly’s of Cornwall is delighted with the product!

Got a post-pandemic challenge? Give us a call to find out how we can help you!

01603 620780 / hello@bdhtullford.co.uk

Orange Heating Supplies has moved to a bigger unit, we haven’t gone far, we are now in a different unit on the same commercial park, this has allowed us the space to grow and show our customers in the plumbing and heating industry more of what we can offer.     It also has allowed us more social distancing for our customers and staff to keep everyone safe and we have hand sanitiser available at the entrance.   Orange Heating Supplies supply all plumbing, heating, renewable heating, underfloor heating parts to trade, see the map for their new location.  All customers welcome, pop along to see our new showroom for all plumbing and heating supplies.

We are so looking forward to fully opening our doors once again when it is safe to do so. A huge heartfelt thank you to everyone who has supported us and the whole team during this time – whether through your kind messages checking in on us or your takeaway Afternoon Tea orders.

We remain hopeful that we can re-open across the Hotel, Restaurant, Treatment Rooms and Garden Room venue on the 4th July and are taking bookings now for that date and beyond.    In line with the latest government guidelines, we have started undertaking the required changes to our operations to ensure we reopen safely but with our usual luxury home from home experience still in full evidence so you will be able to book with confidence. We are fortunate in having so much space across our buildings and grounds to allow you to relax and enjoy some time away with us.     Our measures include:  – Reduced occupancy and dining numbers – In depth cleaning and protective equipment including gloves and masks where appropriate – Distance reminders – Distant and contactless service – Team member training and health monitoring – Flexible cancellations in line with our usual 72 hours notice policy if things change and mean you can no longer travel to us.    If you have any questions at all, please don’t hesitate to contact us via info@norfolkmead.co.uk, or you can book or enquire about hotel gift vouchers, beauty treatments, event venue viewings and hotel rooms on our Norfolk luxury hotel website.    Keep safe, and keep in touch and we hope to see you soon.     James, Anna and Team Mead x

A New Chapter in a City of Stories : Image Development

Stories. We all have them. They have the power to capture imaginations, impart wisdom, engage and excite. Ours began in 1989. Along with Taylor Swift, The Simpsons and the World Wide Web, Image Development was first born. Our offices on Norwich’s Cathedral Street housed our design and admin, whilst an unassuming garage belonging to the father in law of Managing Director Iain, housed our production facilities. From this first humble chapter, our story unfurled. We grew from our passion of helping clients share their very own stories. Getting them noticed with striking displays, immersive events and a knack for finding that interesting angle.

As we grew, we became even more specialised in events and exhibitions, incorporating as Image Display & Graphics Ltd. in 1996. From there, we gained a reputation as award winning exhibition stand design and build contractors, with this fast becoming over 80% of our business. In recent years however, our wider marketing expertise has taken a more central role in the events we deliver for our clients. Many have touted the ‘end of events’ as we know it at many points in our history. Of course we’ve seen events change. Yet far from ending, they have evolved, with more integration of digital and the wider marketing mix. Importantly we never lost sight of our roots, allowing us to evolve with this growing need for a cohesive understanding of marketing in all our work. It was natural as more clients came to us for their events needs, we had grown in a specific direction, but our multi-talented roots were never far away. So what does this have to do with a new marketing brand in 2020?

Inspired by the bustling community of creatives, independent businesses and entrepreneurs of our home city of Norwich, we knew it was time to grow. In order to do so we looked back to our roots, our story. From here we took the design, marketing and brand development services we were originally built on and injected them with the experience and event led work that has come to be our mainstay. The result? An experientially driven creative marketing service built around you, our wonderful clients, collaborators and colleagues.

So what is #NorfolkBiztory?

To mark our launch and share the power of stories in building brands, we want to hear yours! To share the network of incredible people and brands in our local business community, we’re asking you to use the hastag #NorfolkBiztory to get involved.

As we reopen and recover, making clients a part of your story will be more important than ever, so let’s start sharing them together…

Using #NorfolkBiztory, you could share:

• A unique insight into your origin story

• The problem you set out to solve for your clients & customers

• The reason you do what you do

• A value or values that underpin what you do

So use #NorfolkBiztory, tag us @ImageDevelop across your socials (Twitter, Facebook, Instagram…you can find us on Linkedin too), and spread the word and a little experience of you!

Learn more about Image Development & our services here.

Learn more about Image Display & Graphics here.

Since we last published a catalogue in October 2019 we have moved to a ‘digital first’ catalogue and also integrated many of the Packer products into the Southgate range. The beginning of 2020 saw something none of us expected, with a pandemic sweeping across the world and changing how we all communicate and do business. This gave rise to home working, virtual meetings and the opportunity to support businesses getting back to work with a range of welfare products. With packaging enquiries continuing and social distancing still in place we recognised the need to provide a digital catalogue available. In an unstable market with prices likely to fluctuate the catalogue is unpriced to reduce discrepancies. For current contractual prices, stock levels and the ability to place orders 24/7, contact us for your login details to the Southgate Shop. Within this catalogue you will now see references to Packer products. Where a Southgate product code is followed immediately by a Packer product code this indicates the Southgate Product code will take precedence. Where a Product appears displaying the Packer logo this denotes a Packer product has been added to the Southgate range but will continue with the original Packer product code. We are excited to present an extended range of knives and cutters, heat shrink chambers and glue guns. Our focus on sustainability continues as we introduce the new Carbon Neutral and PaperWave Pillow Film for use with the Pacplan AirWave, along with plain or bespoke printed Paper Mailing Bags, the eco-friendly alternative to plastic. These are strong, resilient, cost-effective and available in a range of sizes. Click here to subscribe to your free digital edition of the Southgate Catalogue

As for many businesses across the country, we have been working hard in line with the most up to date Government guidance, as we prepare to reopen our Norwich city centre offices to clients and staff from Monday 15 June. We have completed a robust risk assessment covering our client facing reception and meeting room areas, as well as our internal risks due to staff work areas, transport needs, office cleaning and maintenance requirements and, importantly, the impacts on staff communication and well being.

This has led to the implementation of the following reopening measures:

• Clients will be seen face to face by pre-appointment only. Appointments will also need to be made in advance for document signing including obtaining certified copies of documents for property transactions
• Only two client meetings to take place in the office at any one time, with calendar management allowing sufficient time between appointments for cleaning routines and to avoid crossover
• Distance signage reminders installed throughout the offices
• Perspex screen installed at the 4 Theatre Street reception
• Increased cleaning routines with hand sanitiser and bacterial wipes available
• Masks and gloves will be available for staff to use as required
• On site staff numbers will be reduced with some remaining working from home and a staff rotation system for those on office premises
• No member of staff will be required to return to the office to work if they do not feel comfortable to do so pending the further easing of restrictions and the provision of additional government guidance
• Staff have been briefed and will be required to maintain social distancing
• Staff workstations will be in individual office rooms where possible
• Client deliveries will not be accepted at Dencora House. Please direct any post to 4 Theatre Street
• Please do not attend the office if you are unwell. In line with the most up to date guidance, anyone with coronavirus symptoms must self-isolate for seven days from when their symptoms started. Anyone who does not have symptoms must self-isolate for 14 days from when the first person in their home started having symptoms. See: https://www.nhs.uk/conditions/coronavirus-covid-19/symptoms/

We would like to reassure clients and contacts that we feel confident in maintaining our historically high level of client service within the new normal circumstances. Our staff remain accessible and ready to help you navigate your legal issues – whether you would prefer to continue to liaise via phone or email, or if you would feel comfortable to arrange a face to face meeting.

Please don’t hesitate to get in touch if you have any questions at all. Please call or email your usual Hatch Brenner contacts, or our Managing Partner Dawn Parkes is available to discuss any concerns via dawnparkes@hatchbrenner.co.uk