Clearly, environmental sustainability is a key global issue; the sobering headline from The Financial Times headline on 12 May 2022 could not be much clearer “World on course to breach global 1.5C warming threshold within five years.”
NASA has reported that 2022 was the fifth hottest year recorded globally. In the UK, excess deaths of 3,000 have been officially recorded, with a record temperature of 40.3°C in Coningsby, Lincolnshire on 19 July. Temperature changes are connected to catastrophic and extreme weather events such as the widespread flooding in Pakistan and South East Asia in 2022. The floods in Pakistan directly killed 1,500 and displaced c33m people, wiped out 45% of the counties cotton crops and created the spread of disease.
Climate change is just part of the huge environmental challenge the world now faces; in parallel and interdependently to climate change, we face threats from the dramatic loss of biodiversity and valuable ecosystems. Up to one million species are at risk. For decades it has been accepted that the deforestation of rainforests has been catastrophic for the environment but they continue to disappear.
The UK Government’s Net Zero Strategy: Build Back Greener sets out a plan to reach net zero emissions by 2050, the UK being the first major economy to introduce net zero into legislation. This plan includes reducing the UK’s reliance on fossil fuels, making the transition to clean energy, and investing in green technology.
Big businesses have embraced the net zero target and 82% of the FTSE 100 are committed to the 2050 deadline, charities are however responding slower and less certainly to the challenge and, according to a 2021 survey conducted by the Charity Finance Group (“CFG”) 84% still had to set a net zero objective and only 14% reported on their carbon emissions.
Charities completing the CFG survey drew out the following challenges to setting a net zero objective:
- Understanding what changes could be made;
- Estimating the cost of making net zero changes, especially higher property related costs;
- Demonstrating net zero and charitable purpose linkage;
- Communicating the need and getting buy in from stakeholders, especially funders and beneficiaries; and
- Lack of guidance and best practice – so few have done it that case studies are thin on the ground.
The regulator and legislation has helped somewhat with these challenges – charities that qualify as large companies now have to comply with the Energy and Carbon Reporting Requirements of S172 of the Companies Act, and the 2022 Butler-Sloss case provided clarification of the 1992 Bishop of Oxford case that underpins the Charity Commission guidance on ethical and responsible investment – Charities and investment matters: a guide for trustees (CC14).
The sector is key to tackling the challenges of climate change, after all it’s the sector that the public looks towards for action and even moral guidance on key issues. There is little question that climate change creates massive global social injustice, deepens poverty and creates health challenges – all issues the sector is hugely invested in.
Not having a net zero objective doesn’t mean that the sector isn’t engaged, the same CFG study found that 37% of charities have engaged with their Trustees around their responsibilities for net zero. These discussions are key to building towards the net zero objective and there are many manageable steps that charities can take to help them in setting that objective and making a huge difference quite quickly:
Education
It’s a huge topic, so reading and understanding climate change is essential. It can then become something that can be discussed and at least be on the agenda.
Create a team
Create a task force from across the organisation, make sure everyone is heard and that it is something everyone can feel enthusiastic about and bring great ideas to. This will build a culture of sustainability and help identify opportunities to recycle and reuse rather than sending to landfill. Small changes can make a big difference – printing policies, recycling bins, removing disposable cups, LED bulbs, turning off appliances such as monitors and kettles, turning off lights or automatic units and encouraging the donation of surplus office items.
Look at your travel policy
Encourage people away from more harmful ways of travelling or travelling unnecessarily. Switching to online meetings, car share parking, loans for travel season tickets, cycle to work schemes, paying cyclists enhanced car rates for business travel will all impact your footprint. More innovative policies could also encourage this outside of work with initiatives such as travel days so people use slower alternatives to air travel for holidays.
Who do you work with?
You should only work with people who share your values, so make sure your suppliers feel the same way as you about net zero. Make sure that the sustainability policy of potential suppliers is part of your standard procurement policy.
Be clear and commit
Write a sustainability policy and put it on your website. This will demonstrate commitment and embed the culture of sustainability. Use social media and make sure you tell people what you are doing, it will enthuse your team and encourage others to do the same.
If you have any questions in relation to what we have mentioned above, please get in touch with your normal BHP contact.
