Climate as a purpose

The not-for-profit (NFP) sector is driven by purpose but the assumption can be that that purpose is somewhat all-encompassing. This is an incorrect assumption that puts an enormous weight of expectations on NFPs.

New Zealand’s NFP sector is vast, with over 115,000 organisations and around 28,000 registered charities – the highest per capita ratio in the world – working across a wide range of sectors including housing, health, sport, social services, arts, transport, culture, the environment and more. 

Alongside their own unique challenges, such as funding cuts and a shrinking pool of volunteers, NFP organisations face the same challenging operating environment as any other business including ensuring compliance with duties and regulations, meeting health and safety requirements, dealing with cost-of-living pressures and tackling climate change.

In the 2024 Director Sentiment Survey 25.4 per cent of respondents were directors whose main board appointment was on a NFP organisation. For those NFP directors, while there was a minor increase in focus on environmental impacts (35.8 per cent, up from 31.1 per cent in 2023), the focus was still significantly lower than all other directors (50.5 per cent, albeit down from 56.5 per cent in 2023). The percentage of NFP directors engaged with, and proactively discussing, climate change increased slightly in 2024 (29.9 per cent, up from 28.7 per cent in 2023), but this metric also remained significantly lower than the response by all other directors (47.9 per cent down from 52.5 per cent in 2023).

While the uplift is encouraging, these results highlight that NFP organisations continue to have a narrow focus on purpose that aligns with their objectives. The findings also highlight a sector under increasing financial pressure with ongoing political and policy uncertainty, funding challenges and increased demand pushing organisations to the edge.

So how do you add climate change to the mix when business-as-usual already feels beyond your capacity and resources?

Climate change is increasingly impacting on NFP organisations and the communities they serve, so building organisational resilience, supporting your communities to build resilience, and responding to stakeholder expectations is more important than ever.

Addressing climate change can seem overwhelming, but there are strategies to help integrate climate considerations without overextending capacity.

1. Governance 

• • Ensure you have the right board oversight, including structure, capability and resourcing, to lead your organisation to prepare for, and respond to, climate change and the transition to a low-emissions climate-resilient future.
  • Do you understand your governance obligations, duties and expectations, including foreseeable risk, and what it means for the long-term interests of your organisation?
  • Do you need to do some upskilling and/or include climate/sustainability in your skills matrix for future board appointments?

For example: Rātā Foundation has established a Climate Change Working Group to consider the impacts of climate change, their impacts and dependencies on the natural world, and to support work on a sustainability strategy.

2. Align climate action with purpose 

• • If you focus on community welfare, for example, consider how climate impacts (e.g. extreme weather events) affect those communities.
  • Identify synergies where climate action can also deliver social or economic benefits such as reducing energy costs through energy efficiency (and seek out grants or funding sources specifically available for sustainability and climate resilience).

For example: The Marlborough Sustainable Housing Trust builds accessible, energy efficient homes for people who need housing, which reduces power bills for the residents.

3. Know your number for easy wins

• • Most organisations have “easy wins” they can look at implementing, or enhancing action on, straight away such as waste reduction and recycling, energy efficiencies, water conservation, procurement practices and reducing travel. These can lead to a cumulative impact.
  • Understand your organisation’s carbon footprint and then set targets for reduction.

For example: Auckland’s Ohomairangi Trust purchased six electric vehicles for staff undertaking home visits which has resulted in a significant reduction in their fleet running costs.

4. Learning and sharing

• • Partner with other organisations to share knowledge, resources and best practice on sustainability.
  • Join coalitions or networks that offer training, support and collective advocacy, enabling access to information, guidance and case studies.

For example: Chapter Zero New Zealand was established to mobilise, connect, educate and equip boards to make climate-smart governance decisions by providing free membership and access to a range of resources, insights and events.

5. Risks and opportunities

• • Recognise that ignoring climate change could exacerbate future financial and operational risks. Proactively addressing these risks can protect the organisation from potential future crises and enhance your ability to respond to increasing weather shocks.
  • Climate change presents both risks and opportunities. Climate change should be part of your existing risk management systems – assess and develop mitigation measures, but also explore benefits such as cost savings, new services and strengthened brand.

For example: Nelson Environment Centre is helping to reduce the carbon footprint of supermarkets by ‘rescuing’ unsold and surplus food from the landfill and then donating it to community groups and people who need it.

6. Storytelling and transparency

• • Share your progress and challenges in integrating climate action – but avoid greenwashing. Transparency and accountability can attract supporters who value sustainability, enhance your social license to operate, respond to changing stakeholder expectations, and may provide additional funding or resources.

For example: Trust Waikato releases an annual Sustainability Report outlining its commitments and action at a governance and operational level with regard to operations, investments and grant-making.