Almost five years ago, a handful of UK funders, with the support of the Association of Charitable Foundations (ACF), launched the Funder Commitment on Climate Change, with the aim of providing a simple – yet holistic – framework for foundations to consider their agency within the context of the climate emergency. Today, this has grown into #PhilanthropyForClimate, a diverse movement of nearly 800 foundations across the globe with a shared commitment to urgent climate action.

Through annual progress tracking, we see that foundations are steadily making progress towards integrating climate across various aspects of their work – from their governance to their grantmaking. For foundation signatories of the commitments, although differing in size, mission and geographic location, the framework helps spark, structure, strengthen, and sustain their climate awareness and action, whether they are just getting started or are ready to demonstrate leadership in the field.

Oakville, Ontario, Canada. Photo credit: Unplash

Sparking their need to act

In 2019, the Canadian municipality of Oakville declared a Climate Emergency due to rising extreme weather events, threatening infrastructure and affecting residents’ lives. This announcement reinforced the then-recent inclusion of climate change as a strategic focus area for the Oakville Community Foundation (OCF), whose fundholders’ and donors’ interests in such initiatives were quickly increasing.

Investments at the beginning of their journey

As a community foundation, OCF builds local resilience through philanthropy, focusing on charitable activities including health, youth, gender equality, and education. Partnering with local donors and organisations they ensure long-term investments for the community’s future strength and prosperity. Given the threat of climate change to their investments, it became increasingly clear that they needed to incorporate climate considerations into their planning to sustain returns on endowed assets.

While the OCF adopted ESG monitoring, began small environmental impact investments, and required Investment managers to sign the United Nations Principles for Responsible Investment, the team recognised that they needed a more comprehensive approach to climate action.

In addition to including climate considerations in their investment practices, OCF’s partnership with the Mississaugas of the Credit First Nation encouraged them to reflect on Oakville’s history and Indigenous perspectives of land stewardship and relationships with the natural environment.

At this point, OCF learned about the Canadian Philanthropy Commitment on Climate Change through its membership with Community Foundations of Canada and signed the commitment in October 2021 to rally national support for local climate action.

‘Initially, we were concerned that we did not have the staff resources to undertake and report on our efforts appropriately. However, through strategic recruitment of volunteers, committee and board members with the appropriate expertise, we were able to apply the commitment framework which helped us identify our current organisational actions and gaps,’ said Wendy Rinella, OCF’s CEO.

With their commitment signed, and the resources in place to support the implementation, OCF quickly got to work.

Structuring a unified approach to climate action

The #PhilanthropyForClimate framework helped OCF adopt a new perspective. As Rinella put it, ‘It provided a framework that facilitated considering climate across the entire organisation rather than in an ad hoc approach in separate areas.’ The Foundation realised the need for climate action in all operations including granting, investments, administration, procurement, and its direct programmes.

An active and supportive Board

The Foundation’s Board strongly supported this shift, integrating the commitment into organisational policies. They created a Climate Sub-Committee, led by a local climate leader who reviewed The Foundation’s operations. The outcomes were integrated into The Foundation’s Investment and Procurement policies, and the sub-committee was folded into the Governance Committee which now conducts this review and publishes it annually as part of its work plan, ensuring accountability and transparency.

Expanding their climate considerations

In an effort to walk the talk, The Foundation leveraged its #PhilanthropyForClimate commitment to integrate a climate lens for organisational transformation, while also encouraging their partners and wider community to learn and act alongside them. For example, they began purchasing carbon offsets through direct grants to local environmental charities like OakvilleGreen’s tree planting initiative. Their GIVEoakville project’s applications were amended to encourage the intersectionality of the applicant’s proposed project focus on climate change. The Foundation expanded the Debwewin project in their Community Classroom Initiative so that students learn about Oakville’s Indigenous history and traditional perspectives. In 2022, OCF began working on a locally-focused climate report in partnership with Oakville-based Sheridan College and the Halton Environmental Network, looking at the climate change impacts on their community with original research on local youth climate anxiety. It suggests tangible actions all community members can take to ensure a healthy and sustainable community legacy and inspire shared efforts.

Strengthening their commitment through governance and reporting

To increase their ambition and strengthen their work on climate, OCF integrated their commitment into their governing policies. Given the interconnectedness of their investments and their impact, transforming their practices was essential. The organisation’s Investment Manager, who made a Net Zero Asset Manager commitment in 2023, is a member of Climate Engagement Canada and includes commentary on ESG and Sustainability risks of the investment pool in their regular reporting. Climate change and adaptation have become a key area of focus for OCF’s Impact Investment portfolio.

Recognising the value of networks and learning communities, OCF joined Tamarack Institute’s Community Climate Transitions to advance its expertise and identify where to apply a climate lens for greater impact. They are keen to showcase the work they have done to support other organisations’ climate transitions.

Sustaining a long-term climate commitment

OCF is always thinking about the future. As managers of community endowments, they must continue to generate revenue to meet the needs of their community today and tomorrow. As they increasingly understand the complex effects of climate change on their community, The Foundation is focused on ensuring their efforts to increase the capital available for their local grantmaking do not worsen existing challenges.

OCF plans to improve its monitoring tools for climate factors related to investments to shift more of its portfolio towards climate action. They plan to allocate more resources to climate-related initiatives, providing education and support for Oakville residents to learn about climate change and adaptation, and take action.

Looking ahead, Rinella said that ‘[OCF] is transitioning from being reactive in climate action to becoming a leader in helping other organisations transition to more sustainable operations.’ Their commitment to climate action underscores the Oakville Community Foundation’s long-term strategy to address the climate crisis and ensure a healthy community legacy for future generations.

–

We invite you to commit to climate action and join our growing global community of foundations! Learn more about #PhilanthropyForClimate here.

Erika Miller is Head of Climate at WINGS.