Environmental drivers

Our environment is changing at an alarming pace. As the weather becomes more extreme, this will more regularly impact how all voluntary organisations can achieve their mission.

Use this chapter to explore key environmental trends shaping the coming year. Learn more about the insights we offer into the crucial steps being made to safeguard the future of our environment.

Use the guidance to consider how voluntary organisations can move towards a more sustainable world.

Build your charity's resilience to climate change through adaptation

Climate change is often considered an issue for the future. But across the globe and within the UK, climate change risks are being realised. This can be seen through the impacts of extreme temperature changes, severe floods, and intense storms are being felt. 2023 ended as the hottest year.

In December 2023, the National Audit Office highlighted that these events bring significant costs – many of which can also be carried by voluntary organisations. A number of charities are having to respond and adapt to our changing climate:

  • Attendants at the World Scout Jamboree in South Korea suffered from unprecedented heatwaves and typhoons caused by climate change. Hundreds of participants fell ill due to the high temperatures.
  • The Scout Association spent £1m relocating the 4,500-strong UK contingent due to an incoming typhoon, a cost which it said will affect its work for the next five years.
  • The National Trust has reported that it is already experiencing the consequences of more frequent extreme weather events. For example, heavier rainfall is overwhelming historic guttering systems causing recurring issues with damp, and higher temperatures are causing issues with humidity, as well as providing ideal environments for pests and disease.
  • The Trust launched the A Climate for Change report outlining the charity’s approach to climate adaptation and details how technology is helping detect future threats to its places.
  • In response to the summer 2022 heatwave in the UK, the Museum of Homelessness, in collaboration with its Homeless Taskforce partners, investigated and analysed the emergency response to the extreme weather. The recommendations of the investigation are designed to help our homelessness systems be ready for the increasing frequency of climate events.

All charities should be doing their part to prevent increases in global temperature. Charities need to build resilience by evaluating how their communities and work will be affected by extreme changes in temperature and plan how to adapt.

Stay ahead

  • Learn what types of action your organisation can take to adapt to climate change risks and opportunities in the UK Climate Risk Sector Briefings.
  • In 2023 the government published the Third National Adaptation Programme setting out the actions that government and others will take to adapt to the impacts of climate change up to 2028. Voluntary organisations can use this analysis when considering their journey to climate adaptation.
  • The VCS Emergencies Partnership is a network which brings together local, regional and national organisations around emergency response and preparedness experience.
  • Local charities may consider engaging in Local resilience forums (LRFs) - multi-agency partnerships made up of representatives from local public services, military and voluntary sectors to plan and prepare for emergencies. Get details for your local LRFs on GOV.UK.

Government set to take a slower path to net zero,; but legal obligations remain

In September, Rishi Sunak weakened the government's climate commitments as he shared plans to:

  • postpone key net zero deadlines
  • expand fossil fuel production in the North Sea.

They state this approach is ‘fairer’ because it will make the transition to net zero more affordable for UK households.

Fundamentally, many analysts believe a slower path to net zero means more fossil fuel emissions and faster and more severe global warming. The government’s independent adviser on tackling climate change, the Climate Change Committee, has flagged its low confidence in the government meeting its target and has urged them to go further.

Others have raised concerns that delaying net zero deadlines may lead to higher costs for families. Independent analysts think it may shift costs from predominantly wealthy landlords to predominantly poorer renters.

Despite a change in pace, the UK remains has a ‘net zero’ legal obligation – a 100% reduction of greenhouse gas emissions by 2050 compared with 1990. The overall direction of travel continues to be towards decarbonisation.

The party that wins the next general election could be in power until 2028-2029. That will take us right to the end of a decade that is critical for our enviornment and hitting our climate goals.

The United Nations (UN) has said humanity must now significantly reduce its fossil fuel emissions by 2030 to avoid the worst effects of climate change. At the same time, we need to reverse the enormous damage we have done to wildlife and ecosystems to avoid another ‘lost decade’ of conservation. Expect some immediate progress as Natural England will set out its preference for a new National Park and National Forest.

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Transform your charity operations to get to net zero

Reaching the UK target of net zero by 2050 will involve every sector of our economy, including charities. However, high energy and price inflation have increased costs for charities at a time when they are still recovering from the pandemic. This will impact charities' ability to lower their carbon footprints.

Many smaller charities in particular face operational challenges around capacity, skills and resources that will make it difficult to do more.

Research from Pilotlight estimates that 100,000 additional skilled volunteers are needed to make sure charities working on climate and sustainability are achieving their missions effectively.

While there are practical things you can do to your property and reduce waste, you can also consider changes to your digital footprint such as:

  • choosing a web host that runs on renewable energy
  • choosing a web server closer to where you operate
  • picking efficient software
  • not storing unnecessary or outdated content on your website.

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Maximise how your buildings saves energy and costs

April 2023 saw new Minimum Energy Efficiency Standards (MEES) rules being introduced requiring any landlords of commercial premises to meet minimum energy performance. To date, there has been minimum enforcement but it’s expected local authorities will start to act in the year ahead.

Alongside these rules, larger charities with over 250 employees (as of the end of December 2022) have until June 2024 to complete the mandatory energy assessment under the Energy Savings Opportunity Scheme (ESOS).

Regardless of enforcement, acting on energy can be a money saver. Research cited by the Energy Saving Trust suggests that the average small and medium-sized enterprise could reduce energy bills by 18 to 25% by installing energy efficiency measures and implementing behavioural change. Lower use means lower bills.

However, our recent survey found that 41% of charities specifically struggle with property maintenance. Many charities that manage properties will struggle to afford expensive measures like replacing heating and cooling systems and upgrading insulation.

To help, voluntary organisations can apply for the government’s £25.5m VCSE Energy Efficiency Scheme until March 2024, which is part of the £101.5m package for charities announced in last year’s spring budget.

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As risk of droughts rise, water bills will rise too

In April 2023, water bills increased by the most in almost two decades, with an increase of 7.5%. In the short term, they could rise by less than planned from April 2024, as 12 water companies have been hit with a collective £114m penalty for missing targets on pollution, leaks and customer service.

However, in the medium to long term, water companies have submitted plans to regulator Ofwat to raise bills by an average of 35% between now and 2030. This means the average household’s bills could reach as much as £605 over the next seven years. Plans are being scrutinised by Ofwat with final decisions set to be made in December 2024.

The increases are being called for to respond to growing risks of extreme weather, with the National Infrastructure Commission estimating a one in four chance of a severe drought before 2050.

To avoid this risk, they have called for additional water supply and demand reduction, totalling the equivalent of well over 22m bathtubs of water per day. Trade body Water UK claims this will fund a near-doubling of current levels of water and sewage infrastructure.

The rising costs are in the context of increasing concern about high debt held by water companies and risks providers like Thames Water will go ‘bankrupt’. While it seems beyond belief that water supplies will cease for financial reasons, it will be possible to see big changes to suppliers.

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Act on your investments to lead us to a fossil-free future

The UN states that fossil fuel continues to account for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. 2023 saw several fossil fuel companies such as BP, ExxonMobil and Shell step back from climate change commitments.

While the industry may be stalling, charities are increasingly stepping up to support a transition towards a fossil-free future.

Many are looking at areas like banking, pensions, and investments to see if they are unintentionally funding the industry. For example, Christian Aid recently stopped banking with Barclays because it continues to finance fossil fuel projects.

In 2023, NCVO launched the Fuelling Positive Change campaign, encouraging charities to divest from fossil fuels. Within four months, the number of charities signed up to the campaign more than tripled with 31 charities committing to a fossil-free future.

The Funder Commitment on Climate Change passed the 100-mark figure and now 108 trusts and foundations have signed the commitment, agreeing to play their part in addressing the causes of climate change. This includes stewarding their investments for a post-carbon future and decarbonising their investments.

As the need to shift from fossil fuels becomes ever more pressing, charities should consider:

  • how they are supporting the fossil fuel industry
  • if this conflicts with their charitable objectives
  • how they might support the transitions towards a carbon-free future.

Stay ahead

  • Get involved in Fuelling Positive Change our sector-wide campaign encouraging charities to think about divesting from fossil fuels.

Environmental action remains a priority for the public during the cost of living crisis

Climate change continues to be a priority for people in the UK. According to the Office for National Statistics, climate change and the environment were the fourth most important issue for adults in the UK, with 61% of people expressing concern.

That concern is translating into action, with 72% saying they had made a lot or some lifestyle changes to help tackle climate change.

Similarly, recent polling from Ipsos showed that 77% of Britons think climate change is a serious global threat. There is also now broad public support for specific policies to limit global warming, such as increasing investment in renewable energy.

With government rhetoric on the environment reducing, there will be more pressure on charities, civil society groups, and individual citizens to lead on climate action and make the case for a swift and just transition.

According to Hobby Dean, not-for-profit senior solution consultant at Sage Intacct, charities can attract more donations by strengthening their environmental, social and governance (ESG) practices.

People look to charities for support, guidance, and moral advice and with that comes a responsibility to act on climate change. But with organisations, donors, and funders looking to contribute to organisations that have more of an ESG agenda, there are also potential opportunities that come with addressing climate change.

Charities should review:

  • how they are engaging on climate action
  • what resources they need to continue or extend their efforts
  • how they are measuring their impact
  • how they are communicating their efforts with supporters, donors, and funders.

Stay ahead

This page was last reviewed for accuracy on 22 February 2024