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Waking up to warming

Governance | Suzi Leather | 1 Oct 2007

Dame Suzi Leather considers the Charity Commission’s role in encouraging environmental best practice.

With the exception of perhaps Jeremy Clarkson, nearly everyone now accepts that polar bears may be endangered by global warming. Unsurprisingly then, public expectation is growing that all organisations – whether commercial, public, or charitable – must help to slow the pace of climate change. The expectation of charities to do the right thing in all areas, from the direct charitable work they do, to employment practices, right through to environmental impact, is increasing. There is a real opportunity here for charities to make a virtue out of necessity and not only to make their contribution towards protecting the planet and our environment, but to be seen to do so.

Charities are established for the public benefit and, although reducing their carbon footprint may not be a requirement in demonstrating public benefit, the reputation of charities which are conspicuous in ignoring developing good practice in this area may suffer.

Greening the agenda

So far, there is relatively little reference to sustainability or climate change in publicly available information about charities. Only four of the largest 30 charities make any reference in their trustees’ annual reports to the environmental impact of the charity’s work. It’s also hard to find much reference on charities’ websites or in the national media. For many charities, minimising their impact on the environment while maximising their impact on the problems they alleviate may be an intrinsic part of their philosophy, but it’s not something they appear to discuss externally. Either it is relatively rare for charities to shout about their green successes or there is more the sector could be doing.

There are over 190,000 registered charities in England and Wales. If the whole sector committed to changing the way they work to become more environmentally responsible, the impact would be significant.

The Charity Commission is aware of its regulatory remit, and its limits, but we do have a statutory responsibility both to promote the effective use of charity resources and to increase public trust and confidence in charity. There are two main ways that, operating within their objects, charities can directly contribute to improving sustainability.

Firstly, there are the in-house measures such as ensuring PCs and lights are switched off at the end of the day, turning thermostats down, recycling waste paper, seeking green suppliers, etc. Many of these measures either involve no costs, or will result in fairly swift cost-savings, and can be used as positive PR for the organisation.

But what about more substantial changes that incur a greater up-front cost? If there is no tangible financial benefit to the charity, is it right to spend donors’ money on things that benefit the environment, but don’t directly help their beneficiaries? This is a fair and relevant question. And charities can legitimately do far more than they might immediately think possible.

We think it’s reasonable for trustees to spend funds on activities that promote the charity’s interests and reputation, as long as they further its purposes. Spending money on environmental measures is an area where trustees have to identify and manage risks, and be prepared to justify their decisions as being an effective way of furthering their objects.

The Charity Commission is also considering how charities that don’t have a specific reference to the protection of the environment in their objects may have scope to further their own objects through projects related to the environment. For example, could a charity with relief of poverty objects look at the impact of climate change on poor communities overseas, or a charity for the relief of sickness look at how protecting the environment can affect the population’s health? Clearly we cannot encourage charities to overstep the limits of their registered objectives, but we want to encourage charities to explore the full scope of their objects. If in doubt, please get in touch with us to discuss how you can develop your activities within the scope of your objects.

Dame Suzi Leather is chair of the Charity Commission

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