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Benefits and Challenges to the Rising Impact of ESG in the Charitable Sector

ESG (Environmental, Social, and Governance) has become an increasingly significant concept in the charity sector in the UK. The term was coined by the United Nations in the mid-2000s, initially as a metric to help investors assess the health and future profitability of a company.

While ESG principles were therefore first rooted in the corporate world, their adoption in the charity sector has been driven by a growing recognition of the interconnectedness of social and environmental issues, as well as the need for responsible governance to build public trust and secure funding.

The evident and increasing rise of the importance of ESG in the charity sector is attributed to several factors. Firstly, there is a growing awareness that environmental and social issues significantly impact the communities and causes that charities work to support. Climate change impacts are perhaps the biggest, and most obvious, examples of this.

Secondly, stakeholders, including donors, beneficiaries, and the public, are becoming more discerning in their choices. They expect charities to not only be effective in delivering their services but also to do so in an ethical, sustainable, and transparent manner. ESG provides a framework for demonstrating these qualities.

Thirdly, as public trust in charities has faced challenges due to concerns over governance and financial management, adopting ESG principles can help charities demonstrate their commitment to responsible and accountable governance. This, in turn, can help maintain or rebuild trust with donors and beneficiaries.


Webinar: Navigating Change - Strategies for Financial, Social, and Environmental Resilience

In our latest webinar, we had an expert panel discussing strategies for sustainable resilience. 

In a world marked by constant transformation, charities play a vital role in addressing societal needs. This webinar equips you with valuable insights and practical and proactive strategies to thrive in times of change.


Contact Us

James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. We deliver focused, innovative advice to a diverse range of businesses and individuals helping our clients to maximise their potential. 

If you would like to discuss either of these topics further, then please contact a member of our Charities & Education team at James Cowper Kreston. 

Kind regards

Fiona Hawkins | Partner

T+44 (0)7990 525280 |


The information in this newsletter must not be relied on as giving sufficient advice in any specific case.   


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