Governance news bites
A collection of governance-related news snapshots that you might have missed in the past two weeks.
OPINION: We hear a lot about environmental problems and threats from climate change. News headlines talk about floods, droughts and other weather events – we may have even been affected or know people who are. But what does that have to do with charities we are involved in? Why should they have a sustainability strategy?
Increasingly charities are needing to consider these issues as part of good governance. When you sit around the boardroom table of a charity the considerations need to stretch beyond what may have been acceptable in the past.
Charities have not been required to consider their environmental impact, but that is rapidly changing. Charitable funders, local and national government and other stakeholders are starting to look for carbon- and waste-reduction plans from those they contract for services. But is that the main reason to care about this?
Let’s consider five perspectives on the role charities play and why they should engage in environmental sustainability for the sake of good governance.
Considering your environmental impact, both positive and negative, is the right thing to do. Every charity, big or small, is motivated to do good. Our culture is shifting to realise how interwoven we are with the planet – including what is good for the planet is becoming a fundamental ethical principle not a ‘nice to have’.
Sustainability strategy starts from a commitment to be on the right side of history, to be part of the solution to climate change, and not part of the problem. Reducing your negative environmental impact, even in small ways, is an ethical good and you will discover more ways to add value to your charitable aims through points of intersection between human and environmental wellbeing.
Ask: How might environmental sustainability connect with your core values as an organisation?
When you start talking about this you will find that most people in your organisation deeply care about the natural world. And most people feel overwhelmed by the problems and helpless.
Adding an environmental component to your organisation’s strategy will enable your staff, volunteers and local communities to feel empowered in taking positive practical actions. It feels good! People’s commitment to your organisation is strengthened when you align with their values.
Ask: What do your people care about and how can this focus connect with them?
Looking after the environment is foundational in Māori culture. Acting on sustainability is a significant way to give expression to your commitment to honour the Treaty of Waitangi.
The entire community sector is grappling with how to listen carefully to Māori, uphold Māori values and address inequalities. One component is care for taiao, the natural world, from a growing sense of being in relationship with nature. It is an interesting challenge for people-centred organisations to enhance greater connection with other forms of life and the specific places you relate to.
Ask: What opportunities can you see to express your bicultural values through environmental action?
A warming world increases the risks to the work you do. These might be direct impacts of flooding, fire and sea level rise, as well as all manner of problems such as communication blackouts, family violence or hikes in food prices.
Now is the right time to have a good look at tech predicted impacts of climate change on your community and your operations. Identifying threats to both infrastructure and human wellbeing will enable you to be as ready as you can be for various disasters. But even more important is understanding your role in building resilience in the communities and whānau you serve.
Charities support our most vulnerable people, and sadly climate change will only increase inequities.
Ask: What risks do you and your community face from climate change?
It is increasingly clear that many charities will be asked to have a sustainability and climate strategy as part of their funding reporting.
You may not yet be required to report on your carbon emissions, but starting on the process this year will make it easier next year. It makes sense to quickly get on board with national goals, such as Te Whatu Ora’s ambitious target of 25% fewer emissions over the next couple of years. Starting to gather data now will make it easier to plan.
On the positive side, sustainability practices tend to reduce costs and growing clarity on sustainability can open up new sources of funding and new partnerships.
Ask: What environmental impact reporting will benefit your organisation going forward?
Those of you on boards of charities need to turn your mind to these issues. Governance involves considering all the factors that might impact your organisation and charities will not be exempt from thinking about their place in relation to the environment.
If you’re interested in finding out more about climate governance head to Chapter Zero NZ
Steven Moe MInstD is a partner at Parry Field Lawyers and works in corporate law providing advice to companies and for purpose organisations. He is the host of the IoD governance podcast Board Matters. He is on several boards and has chaired Community Finance which has raised $136 million for social housing. He is a member of the Edmund Hillary Fellowship, the XRB Advisory Panel and hosts Seeds - a podcast with 360+ long form conversations on governance, leadership and entrepreneurship. Steven is also a facilitator on the Company Directors Course.
Silvia Purdie is a sustainability consultant and climate educator working in the community sector, and founder of Place Consultancy. She brings a diverse background in community work and training, as an ordained minister, author, counsellor and supervisor. Silvia, who is based in Upper Hutt, is a pākehā passionate about bicultural partnership and the importance of the Treaty of Waitangi in addressing climate change.
The views expressed in this article do not reflect the position of the IoD unless explicitly stated.
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