An increasing number of funders are making progress in adopting measures to tackle climate change and protect the environment, an Association of Charitable Foundations (ACF) survey has found.

The survey forms part of the third annual progress report on funders signed up to green pledges made in the ACF’s Funder Commitment on Climate Changes.

This year the commitment reached 100 signatories among funders, up nine on last year’s report.

Its key pledges focus on funders commitments to:

• educate staff and trustees on climate change
• commit resources to tackle green issues
• integrate climate change into existing programmes
• invest in a post carbon economy
• decarbonise its operations
• report on progress and share learning

The ACF’s progress report for 2023 found that 61 funders have either made some progress or at an advanced stage in educating trustees, staff and stakeholders about climate change, compared to 47 the previous year.

An example cited by the ACT is the Brian Mercer Trust, which has appointed a lead trustee on climate change, who promotes training opportunities and provides its board with monthly updates on environmental news.

Meanwhile over the same period the number who had made some progress or are at an advanced stage in committing resources to tackling climate change increased by a similar level, from 47 to 60.

The Oglesby Charitable Trust is among those committing resources in this way, through its launch of a green grants programme targeted at non-environmental charities that commits an additional £100,000 in funding for environmental activity.

Post carbon economy

However, the increase in funders investing in a post carbon economy is less marked, from 46 last year to 53 in 2023. In addition, there was a small drop in the number of funders at an advanced stage from 15 in 2022 to 13 this year.

Among funders backing green investments includes the Treebeard Trust, which has made 10 direct investments in climate and green organisations, including Wyre Catchment National Flood Management Project community interest company.

A focus on climate change friendly investments among funders may increase further in the coming years following a landmark legal ruling last year that allows charities to focus on green investments, even if it means losing out financially by excluding a large part of the market.

While 47 had made some progress or were at an advanced stage in decarbonising their operations in 2022, the figure had only increased to 55 this year.

Action taken includes promoting hybrid working and holding online meetings and events to reduce emissions from travel and lighting and heating costs in offices.

ACF’s report cites the example of Scotland’s Community Foundation that is investing in a project to plant woodlands in Scotland to “act as a future investment in offsetting out carbon emissions”.

Another is BBC Children in Need which has added carbon tracking to the travel section in its expenses form to track its carbon footprint over time.

✨Today we publish the Funder Commitment on Climate Change Year 3 report!

It offers examples of actions taken by foundations to combat the causes & effects of climate change, from funding & investment policies to carbon audits & refurbishments.

Read here https://t.co/BFiVGjl9tg pic.twitter.com/q2hAcvB3Ou

— ACF (@ACFoundations) July 4, 2023

“The Funder Commitment on Climate Change is for all funders, whether they fund environmental causes or not. With over 100 foundations and grant-makers signed up to the Funder Commitment on Climate Change, it’s great to see how funders are putting their commitment into action through this new report,” said ACF chief executive Carol Mack.

“I hope that the progress report provides inspiration and motivation to funders taking their first or next steps to integrate climate considerations into their work. It’s easy to feel overwhelmed by the scale of the challenge, but the Funder Commitment provides a framework to help guide action, whatever a foundation’s mission.

“As our new report shows, foundations have a vital role to play in tackling the climate crisis.”

According to the ACF more than a third of signatories to the FCCC have an annual grant expenditure of under £1m, and organisations range from family and community foundations to corporate foundations and independent foundations, “demonstrating that all funders, regardless of size, type, or mission can take action on climate”.

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