A group of 10 community trusts have signed up to a new pledge aiming to align the approximately $4 billion sector more explicitly with climate change goals.
In an agreement inked last month, the ‘Funders commitment on climate action’ requires signatories to fast-track operational and investment portfolio ‘decarbonisation’ efforts as one of seven broad goals.
“We will proactively address the risks and opportunities of the transition to a low carbon society in our investment strategies,” the pledge says.
As well as “supporting Māori aspirations regarding climate action”, the seven-point plan also ties the community trust collective to directing funding and investment choices towards an “equitable transition” to a low-carbon future and sharing resources among the signatories.
Chair of the new group and Wellington Community Trust chief, Linn Araboglos, said in a release: “We see this as an opportunity to increase accountability, to support action for just transitions, greater equity, community resilience, and ultimately improve outcomes for the communities we serve.
“Taking collective action on climate issues makes sense. Climate action is community action, and we are stronger when we work together.”
Of the 12 statutory community trusts, just two – the Whanganui Community Foundation and the West Coast Community Trust – have yet to endorse the climate action agreement.
The new group is also encouraging other ‘funders’ beyond the community trust sector to sign the new pledge.
“Community funders, whose assets are held for the public good, play an important role,” the group website says. “The way we invest and partner with communities to support a just transition to a low carbon society, with increased equity, climate resilient communities and better outcomes for our environment is a critical responsibility.”
Under the climate commitment, all signatories agree to report annually on progress towards the goals.
Overall, the official community trusts manage about $4 billion, led by the $1.6 billion Auckland-based Foundation North.