Peter Hugh Smith, CEO of CCLA Investment Management, recently joined Mark Longbottom on the Purposely Podcast to discuss the company’s approach to investment and its responsibilities to its clients as well as society and the environment.

Founded in 1958, CCLA Investment Management was established to manage the Church of England’s investment fund more effectively. Since then, it has expanded its reach, now managing over £15 billion in funds for more than30,000 clients, including charities, local authorities, and faith organisations.

Smith outlined CCLA’s dual focus: delivering financial returns while ensuring investments align with responsible and sustainable principles. While operating in a competitive commercial environment, the firm takes a distinct approach, prioritising ethical considerations alongside performance.

A dedicated sustainability team plays a key role in shaping investment decisions. Working closely with the investment team, they address major global issues such as climate change, mental health, and modern slavery. This commitment extends to active engagement with companies to drive better practices. One example is HSBC, which enhanced its global mental health policies following discussions with CCLA.

CCLA’s structure and client base provide the flexibility to challenge industry norms. Smith pointed to the firm’s stance on Shein’s potential listing on the London Stock Exchange, raising concerns about the company’s labour practices. This ability to take strong positions reflects CCLA’s broader approach to responsible investment.

Reflecting on his time as CEO, Smith started at CCLA just prior to the Global Pandemic which, with the benefit of hindsight he says that was fortuitous because he had a chance to form bonds with his team that is keen to pay tribute to his team however he recalled one of his toughest moments: the decision to shift all staff to remote working at the start of the pandemic. The sudden transition underscored the importance of adaptability and collaboration within the organisation.

Looking to the future, Smith emphasised the need for CCLA to stay competitive while navigating evolving regulatory standards. He also highlighted the ongoing challenge for charities in recruiting skilled trustees, an area where additional support is often needed.

His discussion on the Purposely Podcast offered a clear perspective on CCLA’s priorities: balancing financial performance with a commitment to ethical investment, while continuing to support the organisation sit serves.

Smith was in New Zealand as a guest of Trust Management, sponsors of Purposely Podcast