Environmental responsibility for charities
How charities can improve their impact on the environment and be energy efficient.
Applies to England and Wales
This guidance covers some of the common issues connected with environmental responsibility. It includes information on when trustees need to contact the Charity Commission and when they can take decisions themselves.
It is for charity trustees to decide if becoming involved in environmental activities is:
- in the best interests of the charity
- an effective way of furthering the charity’s purposes
How to improve the environmental impact of a charity’s buildings
Some actions which a charity can take won’t cost anything, or may reduce costs for the charity (for example shutting down PCs at the end of the day or lowering thermostats). These actions are maximising the charity’s use of resources, which a charity should be doing anyway.
Other actions may cost something, for example switching to a ‘green’ energy supplier which is more expensive than other suppliers. In these situations, the trustees should balance the extra cost of environmental measures against other factors such as benefits to their reputation and donor confidence. The trustees can proceed where they think it’s in the interests of the charity to do so.
Further information may be available from an umbrella or sector support body.
Can charities install energy saving systems
Energy saving schemes include solar panels, wind turbines and heat pumps. These can:
- reduce electricity bills
- improve a charity’s environmental impact
- sometimes provide income through selling surplus electricity to the national grid
Charities don’t usually need to consult the Commission before going ahead with these schemes. It is up to the charity’s trustees to make the decision. Trustees should be clear which of these is their main aim:
- improve the charity’s property (including reducing its electricity bills and reducing its carbon footprint)
- generate income for the charity as a fundraising activity, through selling the electricity produced
Trustees can often use the charity’s general funds to pay for the project, in both cases, as long as they consider that the project is in the best interests of the charity.
Take professional advice if you have questions about using charity funds (such as capital funds) on these types of projects.
Charities whose stated purposes (‘objects’) do not mention the environment
Charities must act within their purposes or objects, as stated in their governing document. The Commission encourages charities to explore the full scope of their objects, without acting outside them.
It’s up to the trustees to decide which activities best further the charity’s objects, and whether this might include environmental activities. Here are some examples of charities which do not have specific objects for the preservation of the environment but who can still carry out environmental work:
- a charity with objects for the ‘relief of poverty’ delivering environmental projects because they have evidence that the effects of climate change are contributing to the poverty in certain parts of the world and that their efforts can help to reduce these effects
- a charity with objects for ‘relief of sickness’ or ‘promotion of health’ researching the effects of pollution on the causes of sickness, or how environmental factors affect the recovery of those with a particular illness
Trustees must be confident that they can demonstrate how their activities work towards achieving their charity’s aims.
Changing a charity’s objects to include environmental activity
Some charities might want to adopt a new object which is specifically related to the environment. Charities can change their governing document to add a new object, but they must first obtain the Commission’s authority.
When you apply for authority, you will be asked to provide information including:
- why adding a new environmental object is in your charity’s best interest
- how the new purpose is similar to the original (if you know them) and current purposes of your charity, and if not, why
- the factors you took into account when making your decision
- what activities you plan to carry out in support of the new object
- any impact on your charity’s existing beneficiaries
Read our guidance for more information about changing governing documents, and how to apply for Commission authority.
Updates to this page
Last updated 7 March 2024 + show all updates
-
Guidance updated to reflect changes introduced by the Charities Act 2022.
-
First published.