As we mark ten years since the Paris Agreement and digest the outcomes of COP30 in Brazil, climate and sustainability issues have become central to good charity governance. For trustees, environmental stewardship sits alongside considerations of resilience, fiduciary duty, reputation and overall impact.

Here are the five key questions every trustee should be asking going into 2026:

1. Do we understand our organisation’s exposure to climate and ESG risks?

Climate change is no longer an abstract issue. It presents financial, operational and reputational risks that can affect every charity, from rising energy costs to supply chain disruption or service demand surges (eg. health, housing and food insecurity).

  • Trustees should ensure climate risks are identified within the charity’s risk register and reviewed alongside other strategic risks
  • The Charity Commission expects trustees to understand material risks, including environmental ones, as part of their overall governance duty
  • The Climate Change Committee (CCC) notes that UK organisations still face “significant adaptation gaps”.

Ask yourselves:

What climate or ESG risks could materially affect our ability to deliver our mission, and how are we managing them?

2. Have we measured our carbon footprint and set realistic reduction targets?

Understanding your baseline is the essential first step towards net zero.

  • Measuring operational emissions (energy, travel, procurement and waste) allows you to identify hotspots and track progress
  • Even small charities can make progress through 'carbon-lite' methods, focusing on high-impact areas like estates, events and travel
  • Speak to your UHY adviser and they can put you in touch with the UHY sustainable business services team who can support you with this important first step.

Ask yourselves:

Have we measured our carbon footprint and do we have clear, achievable interim targets on our pathway to net zero?

3. Are the ESG pillars embedded into our governance, investment and decision-making processes?

ESG encompasses both reporting and the integration of environmental, social and governance factors into trustees’ decision-making.

  • The Charity Commission guidance CC14 allows trustees to consider ESG and ethical factors in investment decisions, where aligned with charitable purpose and beneficiaries’ interests
  • Many funders and institutional donors now require ESG disclosure or net-zero plans
  • Embedding ESG also helps strengthen reputation and stakeholder confidence.

Ask yourselves:

How are ESG and sustainability principles reflected in our investment policy, procurement and overall strategy?

4. How are we communicating our climate and ESG performance to stakeholders?

Transparency is key to credibility. Donors, funders, beneficiaries and staff increasingly expect organisations to report on their environmental and social impact.

Even if not legally required, adopting basic ESG disclosure builds trust.

  • Consider including climate and sustainability in your annual report or impact statements.
  • The revised SORP includes guidance for Tier 3 charities for how the charity is responding to and managing environmental, governance and social matters. Tier 1 and 2 charities are encouraged to do the same.

Ask yourselves:

Are we transparent about our climate and ESG actions, and how do we evidence progress to funders, beneficiaries and the public?

5. How are we contributing to a fair, inclusive and resilient transition?

The COP30 agenda highlights climate justice and inclusion, ensuring vulnerable groups and communities are not left behind in the transition.

  • Charities are uniquely positioned to connect climate action with social value: poverty alleviation, health, education and equality.
  • Trustees should view climate through a mission lens: how do environmental changes affect the people and causes we serve?
  • This aligns with the UN Sustainable Development Goals and the UK government’s 'Just Transition' principles.

Ask yourselves:

How are we ensuring our climate actions strengthen, not compromise, our social mission and the communities we serve?

COP30 is a reminder that the next decade will define whether we meet the Paris Agreement goals. For trustees, climate and the ESG pillars form an integral part of responsible stewardship, long-term resilience and mission integrity.

Embedding these five questions into your regular board agenda will ensure your charity is not only compliant, but also credible, future-ready and aligned with global goals for people and planet.

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