Charity case study: Pilotlight's fossil fuel divestment journey

To mark the launch of our new campaign on divestment for the voluntary sector - Fuelling Positive Change - we spoke to Ed Mayo, chief executive of the charity Pilotlight.

Pilotlight are supporting the campaign and have committed not to invest in the fossil fuel industry. They are also going beyond divestment and focusing on social investment and how their money can support their objectives.

Pilotlight exist to help amplify the impact that charities, businesses, and individuals can have on tackling social injustice and disadvantage. They do this by leading on a range of programmes to help:

charities learn from business experts
individuals apply their professional skills as well as growing their own skills.

In conversation with Ed Mayo, chief executive of Pilotlight

We believe we can build a positive virtuous circle with social investment

Question 4

NCVO: What top tips do you have for organisations considering starting out on their own divestment journey and moving their money away from fossil fuels?

Ed: The first tip I have is to look around and find out what others are doing. I’m a passionate believer that the voluntary sector can cooperate and collaborate far more effectively to create change.

My second tip is to go and do your due diligence on your investments and where you may potentially move them to. Do your homework because choosing to invest socially, for example, is more risky than leaving your money protected in the bank.

Having said that, I think charities should take risks! Often charities will work with groups or communities who are themselves facing huge risks and it is often right to take on some of that risk in order to advance our mission.

I’m a passionate believer that the voluntary sector can cooperate and collaborate far more effectively to create change

Question 5

NCVO: What else have you learnt along the way with your approach to social investment? And how can charities balance good investment with their day-to-day work?

Ed: With the particular social investment that we made, it’s very hard to know how it will play out. With the impact of external factors - for example, the pandemic - it looks like it will take longer to pay back.

It’s also more unusual for charities to invest over a five-year period as we did. Normally you’d be looking for the ability to access your capital earlier should you need it.

So, make sure you look closely at the terms of the social investments you make and consider what flexibility and features your organisation may need. There’s no one-size fits all approach.

Of course, particularly in the current challenging context, there are many charities who simply don’t have the reserves to invest, let alone divest. And for those charities who do, there will be some complexity in working out what’s truly ethical and what’s actually carbon-free.

There are ethical funds and guides and league tables to help you work it out, but it still isn’t necessarily easy. This is where peer support and knowledge sharing are really helpful.

Take a look at this page first to learn about options your organisation can take to divest from fossil fuels

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The Road Ahead

Charity case study: Pilotlight's fossil fuel divestment journey

In conversation with Ed Mayo, chief executive of Pilotlight

Overview of options charities can take to divest from fossil fuels

What is divestment?

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Fuelling positive change: NCVO launches campaign to encourage charities to consider divestment

Overview of options charities can take to divest from fossil fuels

Guidance for charities considering divesting from fossil fuels

Seven steps to successful divestment

Guidance for charities who are already fossil-free

Fossil-free investment agreement

Climate, environmental and financial terms

Communications pack

The Road Ahead

Charity case study: Pilotlight's fossil fuel divestment journey

In conversation with Ed Mayo, chief executive of Pilotlight

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What is divestment?

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