A group of charitable foundations is challenging asset managers to prioritise the needs of future generations by taking part in an investment project with up to a combined £50m available.

The Endowments Investment Challenge was first run by the Friends Provident Foundation, the Blagrave Trust and the Joffe Trust in 2020 as the Environmental, Social and Governance Investing Olympics.

The challenge is returning in 2026 and will be run by a group of six foundations, including the Joseph Rowntree Foundation, Vivensa Foundation and the Children’s Society Foundation.

Further support will come from ShareAction’s Charity Responsible Investment Network, the Impact Investing Institute and Redington, a Gallagher company.

The foundations are calling on investment service providers to create a new portfolio that puts the needs of young people first regarding key social and environmental issues.

There is a combined investment of up to £50m already committed by partners and the group will work with the Future Generations Panel, a panel of seven 18- to 25-year-olds who will inform the process and provide feedback on shortlisting and voting.

Danielle Walker Palmour, director of Friends Provident Foundation, said: “The interest in the Future Generations Panel has blown us away, over 750 young adults applied. 

“They told us that they want our investments to help tackle issues including climate emergency, youth mental health, lack of community, housing, education and inequality, to name but a few. 

“Through the advisory panel and a survey, we’re bringing the opinions of those normally excluded from decision-making to the table.”

Eli Manderson Evans, chief executive of the Blagrave Foundation, said the project is “breaking new ground” in the UK philanthropic space by putting young people at the heart of how endowment investments are shaped.

“It recognises that decisions about capital must be accountable not just to young people today, but to future generations whose lives will be shaped by them,” Evans said.

“We are excited to co-create this work with funders who share our belief that philanthropy must confront the tensions in our positionality and role when it comes to investment practices – and to open up the investment industry to young people as part of that process.”

An open call for proposals will be announced this month and shortlisted entrants will present their ideas at a live event at London’s Barbican Centre next March.