Part 4: Governance

4.1
Governance refers to the systems and processes for leading and guiding an organisation. It is about how an organisation sets its direction and manages its operations to achieve its goals and fulfil its accountability obligations.¹³

4.2
In our view, governance arrangements have a critical role in ensuring that climate actions are consistent with a council's strategic objectives and priorities. Those arrangements are also critical to overall accountability for a council's performance in achieving climate-related objectives.

4.3
We expected arrangements to be consistent with our guidance on good governance, specifically that governing bodies:

• receive regular reports that provide a clear and objective view of an organisation's (or project's) performance;
• are provided with enough detail to support performance management and decision-making, while avoiding unnecessary details about operational matters; and
• are provided with information that enables progress to be compared to strategy, monitoring of risks, and monitoring of financial implications.¹⁴

4.4
The four councils we looked at have different governance arrangements for their climate-related programmes.

Governance arrangements vary

4.5
Three of the councils have clear structures in place for elected members to effectively govern the council's climate change response.

4.6
Nelson City Council has moved from the previous term's committee structure to several "taskforces". The climate change taskforce comprises five elected members, including the mayor. It has no decision-making powers and therefore is not required to meet in public or make public any agendas or minutes.

4.7
Nelson City Council's climate change taskforce meets frequently – usually monthly. Meeting notes indicate that members are well engaged with staff and give regular guidance on strategic issues, such as the preparation of the Council's climate change strategy and community consultation on emission reduction targets.

4.8
Although Nelson City Council's taskforce approach enables more frequent and in-depth engagement between members and staff, it is less transparent to the public. The previous committee meetings were held in public and livestreamed, with agendas, minutes, and recordings publicly available on the Council's website.

4.9
The climate change taskforce can invite members of the public to make presentations at meetings and has done so. Staff also report on the wider climate change programme to the Council every six months. Decisions are debated and made in public at full council sessions. Based on the evidence we have seen, the taskforce approach is a way to meet several of our expectations of effective governance. It also presents a workable alternative to a committee approach. Nevertheless, we encourage the Council to consider what steps it could take to make the taskforce's activities more transparent to the public.

4.10
Environment Canterbury and Whanganui District Council both have traditional council committees that oversee climate-related programme activities. The committees meet between two and four times a year and receive a range of performance information on relevant programme activities.

4.11
From the evidence we saw, Environment Canterbury and Whanganui District Council have adequate structures for effective governance. However, we heard mixed feedback about whether staff reporting about climate-related issues adequately met councillors' needs. In our view, staff reporting was, at a high level, adequate. However, councillors could have particular interests from a governance perspective that might not be covered in normal staff reporting. We encourage all councillors to set clear expectations with staff about the matters they need information on and how frequently they need that information.

4.12
There were conflicting views about how Christchurch City Council's climate change programme is governed, particularly in terms of the role of the "climate change portfolio". After the 2022 local body elections, several "portfolios" – including a climate change portfolio – were established instead of the committees that had been in place before the election. Each portfolio has one elected councillor as the assigned portfolio holder.

4.13
The portfolio role's terms of reference describe portfolio holders as largely having an advocacy role with no governance responsibilities related to their portfolio beyond those which they ordinarily hold as an elected member. However, they also state that the portfolio holder has oversight of effective implementation of relevant council strategies, plans, and policies (in particular, the 2021 Climate Resilience Strategy in the case of the climate change portfolio), suggesting some governance-related function.

4.14
As portfolio holders do not have any council decision-making authority, governance over climate change ultimately sits with the full elected council. However, some we spoke to saw the climate change portfolio performing at least some governance functions. In our view, the climate change portfolio is not sufficiently equipped to perform an effective governance function in terms of staff support and access to information.

4.15
We consider that it would be helpful to all elected members if the governance arrangements over the climate change programme were clarified, including clarifying the climate change portfolio terms of reference if necessary.

4.16
In terms of governance reporting, we saw the full Council receive various reports relating to activities with a climate change focus or dimension. However, Christchurch City Council has a substantial programme of climate-related activities to deliver its Climate Resilience Strategy.

4.17
If the twice-yearly implementation progress reports are to be the main source of governance reporting on the Climate Resilience Strategy as a whole and on progress against its goals, in our view it will be critical that the reports include information on:

• whether implementation of the strategy is on track;
• when key actions are expected to be completed;
• whether there are any implementation issues or risks for the strategy as a whole and how they are being managed; and
• any financial issues given the high number of reported actions.

4.18
We remind all councils that effective governance requires governing bodies to be provided with information that helps governors compare progress to strategies, monitor risks, and understand financial implications.

13: Controller and Auditor-General (2016), Reflections from our audits: Governance and accountability, page 5, at oag.parliament.nz.

14: See "Good governance" at oag.parliament.nz/good-practice.