Luke Fletcher discusses fiduciary duty in relation to the status of Cambridge University as a charity
He explains that charities are bound to maximise their profits whilst simultaneously considering the risk. They are obligated not to invest in companies which pose a risk to the mission of the charity.
Fossil fuel companies could be interpreted as an existential risk to the mission of the university and therefore as being a cause of direct conflict. Charities are obliged to divest without consideration of financial implications in cases of direct conflict.
However, Fletcher explains that fossil fuel companies are more likely to be considered a cause of latent conflict, damaging the charity mission of the university by causing widespread moral disapproval. Latent conflict can also be considered grounds for divestment.
The main takeaway from this is that fiduciary duty can be variously interpreted. Discussions and decisions must be taken as a result of balancing risks: financial risk of divestment vs risk to the charity mission through cause of direct or latent conflict.
That being said, Fletcher clearly outlines the way in which investment in fossil fuel companies CAN definitely be interpreted as a risk and a cause of conflict with charity missions
