NCVO encourages charities to disinvest from fossil fuels

The National Council for Voluntary Organisations (NCVO) has launched a new campaign to encourage charities to take their investments out of fossil fuel-related businesses. The campaign, called "Fuelling Positive Change",  aims to persuade voluntary sector organisations to withdraw their investments from businesses involved in fossil fuel extraction. This includes companies involved in production, transportation, refining, and marketing of fossil fuels such as coal, tar sands, oil, and gas.

The NCVO says the initiative is driven by the recognition that fossil fuels are the main contributor to climate change..

It says several charities have joined the campaign, including Christian Aid, Friends of the Earth, Save the Children, and Sense International. The campaign follows a wider trend, with more than 1,500 institutions worldwide having committed to fossil fuel divestment. The Church of England's recently decided to divest its £10.3bn endowment fund and £3.2bn pension scheme.

The NCVO is providing a resources to help charities make the transition, including:
- A charity investment guide with step-by-step guidance for boards
- Guidance for fossil-free charities
- A glossary of climate, financial, and environmental terms
- A communications pack with templates and graphics

The NCVO will host a series of events focused providing practical guidance on divestment.

Commenting on the guide NCVO's Director of influencing and engagement, Alex Farrow, said that although charities have already played a leading role in addressing climate change, more action was needed. He said the combined power of charitable investments could make a significant immediate impact.

The Chief Executive of Sense, Richard Kramer, said there were practical benefits in supporting the campaign. He said Sense (formerly the National Deafblind and Rubella Association) aims to become carbon neutral by 2040 and that sustainable practices and ethical investment decisions align with Sense's charitable objectives. 

Kramer also said that divestment offers other benefits to charities, including:

• Reduced energy costs in a volatile market
• Enhanced appeal to potential employees, particularly young staff
• Improved standing with donors and commissioners who increasingly consider environmental credentials
• Alignment with broader organisational values and commitments

The NCVO's campaign represents a significant push for the charitable sector to take collective action on climate change, recognising that environmental degradation will ultimately make charitable work more challenging across all areas of operation.