Our commitment to climate change

We will make opportunities for our trustees, staff and stakeholders to learn more about the key causes and solutions of climate change.

Our actions

• All Foundation Scotland staff and Trustees have attended in-depth training workshops on climate change.
• Foundation staff have also attended climate-focused training courses from Zero Waste Scotland and the Association of Charitable Foundations. Further budget has been allocated to enable additional staff training where required.
• We delivered a ‘Greening Community Benefit Funds’ presentation to the UK Onshore Wind Energy Conference, discussing how community funding from the renewable sector could have a more sustainable approach to the future of the communities they serve.
• Our intranet provides information for staff on taking action related to working from home – for example, how to save energy.
• Throughout COP26 staff attended a number of physical and virtual events, talking about our commitment to tackling the climate emergency. Hosts included Environmental Funders Network, Foundations F20 and EDF Renewables.
• In 2023, Foundation Scotland actively engaged in and facilitated various climate change educational opportunities.  We conducted a UKCF webinar for other UK community foundations aimed at demonstrating how sustainability can be integrated into the grant-making process, such as via application questions.
• In 2025, Foundation Scotland has significantly increased its focus on climate learning as part of staff development. Internally, several trustees and selected staff  have undertaken Scotland specific carbon literacy training delivered by Keep Scotland Beautiful, to strengthen our understanding of how the climate emergency affects the communities we support. 
• We have introduced external learning opportunities through our new Green Hour sessions, which bring together staff, stakeholders and grantees. The first session took place in early 2026, with a full programme planned for the year ahead. A Glasgow based organisation was invited to lead the inaugural session, helping staff explore how climate activities can be delivered effectively in low-income, urban environments. 

We will commit resources to accelerate work that addresses the causes and impacts of climate change. 

Our actions

• Foundation Scotland has a dedicated  Climate and Nature Working Group. The group includes staff from all departments to ensure any new initiatives are both deliverable and implemented successfully.
• In 2023, Foundation Scotland reached a significant milestone by surpassing the £1 million mark in green grants, consistent with wider sector trends.  Despite this achievement, there remains steadfast commitment to exceeding the 2% benchmark earmarked for sustainable grants within the third sector.
• In 2024, we began supporting a Natural Capital Community Partnerships Team (NCCPT) through Community Land Scotland. This programme will aim to facilitate community benefits from investment in natural capital across Scotland.  
• In 2025, Foundation Scotland awarded a total of £500,000 to five Community Climate Action Hubs in Scotland’s central belt. These hubs exist to enable local communities to tackle climate change and its impacts.  
• As of 2026, Foundation Scotland is proud that around one third of the funding we distribute now comes from renewable energy sources, reflecting our longstanding commitment to supporting Scotland’s transition to a more sustainable future. 

Within all our existing programmes, priorities and processes, we will seek opportunities to contribute to a fair and lasting transition to a post-carbon society and support adaptation to climate change impacts.

Our actions

• Our Foundation Scotland‘s 2030 Strategy includes an objective to ‘Become a sustainable organisation – from financial, social justice and environmental viewpoints’ - ensuring sustainability from an environmental perspective remains high on our agenda at all times.   
• We will work closely with our donors to introduce more climate-smart objectives for grantmaking programmes, charitable funds, and investments.
• Part of our funding application process asks if the intended project/service will have a positive or negative environmental impact. Where possible, we ask community groups and charitable organisations to consider sustainable alternatives for projects and services. You can read our guidance for those designing projects for people and the planet here.
• We're working with Business Energy Scotland to support applicants in making climate-smart choices for their communities, in particular in the development or refurbishment of community buildings. Read more here.
• Working with other funders in Scotland, we will provide further guidance and examples of good practice for those applying for funding.
• We’re introducing new indicators within our grant monitoring to report on local measures taken towards climate action and sustainability. This will improve the data we collect and help us assess and report any climate-positive impact made with the funding we distribute.
• In 2023, an internal review was undertaken concerning the mandatory climate question integrated into all application forms.  The report unveiled that the majority of organisations effectively addressed these inquiries.  Moreover, it highlighted the broad spectrum of climate-based projects underway across diverse geographies, ranging from sustainable transport and housing initiatives to initiatives aimed at supporting local flora and fauna.
• Foundation Scotland commenced work with the Highlands and Islands Climate Hub to ensure that we can integrate information and guidance on the local support available for sustainable projects to grantees across this region of Scotland.

We will recognise climate change as a high-level risk to our investments, and therefore to our mission. We will proactively address the risks and opportunities of a transition to a post-carbon economy in our investment strategy and its implementation, recognising that our decisions can contribute to this transition being achieved.

Our actions

• In 2025, we transitioned our Investment Manager from EQ Investors—where our assets were held in a bespoke Positive Impact Portfolio—to the Rathbones Charity Growth and Income Fund, which is managed in line with Responsible Investment principles. This change was made on performance grounds and reflects our ongoing commitment to ensuring our investments are both financially robust and aligned with our values.
• Rathbones has set a clear ambition to be Net Zero by 2050, covering not only its own operations but also the investments it manages on behalf of clients. The current carbon footprint of the Charity Growth and Income Fund is 58% lower than the FTSE All‑World Index, demonstrating a materially reduced emissions profile and supporting our aim to steward our resources responsibly in a transitioning economy. 

We will take ambitious action to minimise the carbon footprint of our own operations.

Our action

• We have adopted an Environmental Policy outlining our commitment to protecting and, where possible, enhancing the environment through our operations. We recognise our responsibility to reduce our carbon and environmental footprints, including in the course of carrying out our day-to-day work. We monitor our impact on the environment and use of resources and take ongoing action to minimise these.
• In July 2022 we are launching a new secure online hub for applicants, donors and funding decision-makers. This will reduce our email traffic and reduce the production of paper communications including statements and documents which will become fully digital. Read more about the new system here.
• We have recently undertaken a carbon footprint analysis of our operations. We are currently evaluating the best steps to actively reduce or offset this.  
• In 2025, we introduced a new expenses system that enables us to track and monitor the carbon impact of our travel more accurately, strengthening our ability to manage and reduce emissions across our operations.
• Our direct expenditure on IT equipment is included in our carbon reporting, but the positive impact of our recycling practices is not yet reflected. We recycle all of our outgoing equipment, and we are currently exploring ways to incorporate this into future carbon‑footprint calculations to ensure a more accurate picture of our operational impact. 

We will report annually on our progress against the five goals listed above. We will continue to develop our practice, learn from others, and share our learning.

Our action

• Foundation Scotland’s Climate and Nature Working Group reports to ACF on the actions we are taking each year under the Funder Commitment to Climate Change. 
• We’re introducing new indicators within our grant monitoring to enable us to report on the extent to which progress regarding funding, which has included more supported sustainable or and climate-friendly initiatives.