Case for Action: An Associations' Unique Role

First published on ClimateWise Associations Australia, with content authored by Helen Millicer and Gail Greatorex.

Associations are responsible for delivering services to their members and must now adapt to offer a climate-wise future. Climate change is now a worsening certainty, and there is increased momentum to reduce emissions from all sectors and sources. Associations must rework their strategies, plans, investments and programs to lead their members forward to cut emissions and risks.

Business, industry, professional and community associations need to update the support and leadership they provide to their members to remain relevant and respected. Members select and rely on associations for practical advice, leadership and solutions. With climate change and cuts to emissions a big, growing priority associations have to be ready to answer questions, assist and survive.         

One thing is certain: those that succeed are the ones implementing strategies, reducing risks, embracing opportunities and cutting carbon emissions.

Associations' key advantages

A key advantage of associations is the flow-on leadership effect and vast stakeholder network. Active associations engage and influence their members, their wider industry, governments and sector audiences/customers.   

The standout aspect of a climate program targeting associations is its multiplier effect.

Action by a single association will influence its members, who in turn, can bring about change across all relationships and activities

The other key advantage is associations’ unique understanding of the particular sector or field in which they operate. Retailers know supply chains, architects know buildings, farmers know agriculture, and so on. With the combined knowledge of their members, associations can best identify the risks and opportunities associated with climate change and factor those into strategic plans. 

Director's duties and liabilities​​

In 2016 and again in 2019 the Centre for Policy Development explored climate risks in terms of company directors’ duties.

The centrepiece of this work was a ground-breaking legal opinion on directors’ duties and climate risk commissioned by CPD in partnership with the Future Business Council. The opinion found that company directors who ignore or mismanage climate-related risks could be held personally liable for breaching their legal duties under the Corporations Act. 

This not only applies to ASX listed companies. If your association has not yet informed your board and members of this explicit risk to directors, do so now.

The Australian Institute of Company Directors has published the Climate Risk Governance Guide and provides many resources on its website. AICD is also host of the Australian Chapter of the Climate Governance Initiative.        

Why act on climate change and emissions?

Costs, but also benefits:

We are already counting the costs from climate-driven disasters of record wildfires, droughts, cyclones, flooding and diseases – and the costs are rising as climate change worsens.

These worsening climate impacts don’t only cause physical damage to property, the ripple effects spread wide. Supply chains are disrupted, costs rise, plans are quashed, confidence and security vanishes. Economic and community activity is disrupted, productivity is lost, and health costs – both physical and mental – rise.

Yet, there are many benefits for those that act to become climate-wise. Benefits include – revitalised relevant programs, retained and new members, competitive advantage, profile with new sponsors, partners and governments, and leadership reputation.

The pressure to become climate-wise will only grow, as will the scrutiny of decision makers and influencers on their emissions and adaptations.

Current climate impacts are due to historic emissions and every cut in emissions now minimises climate severity in the future.

Collective action is vital.

Governments, companies and communities around the world are pledging, pivoting and transforming to both cut emissions drastically by at least 50% by 2030 and to minimise climate change impacts upon their operations, assets and future.

Every association is being impacted, and everyone makes a difference.

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About CAFA

Climate Action for Associations (CAFA) is the only dedicated network and resource hub focused on sustainability and net zero for the membership sector. CAFA equips professional bodies and trade associations with the guidance, tools, and peer-to-peer connections they need to take meaningful climate action and support their members in doing the same.

If you're a membership organisation wishing to know more about what you can do to support your members with sustainability and addressing climate risks, join Climate Action for Associations here.