CLIMATE CHANGE FOR HUMANITY
ESG = Climate Philanthropy
In the aftermath of COVID-19, global challenges prevailed including the war in Ukraine, economic crisis in Syria, drought in the Horn of Africa, wildfires in multiple continents and increasing gender divide.
2022 saw increasing philanthropic commitments in support of reducing carbon emissions, mitigating the impacts of climate change, and supporting climate justice by focusing on BIPOC (Black, Indigenous, and people of color), women, and people in the Global South.
Despite the urgency and increasing commitments, giving from individuals and foundations to climate-related causes remains a small percentage of overall charitable giving. A ClimateWorks Foundation report released in October found that in 2021, total grantmaking to address climate change grew 25 percent from 2020 levels.
The increase in giving was significant - 25% over 2020 - and outpaced the growth of giving overall. However, contributions to climate philanthropy accounted for just 1-1.5% of all giving, according to the report — just $7.5 billion to $12.5 billion out of the $810 billion given to all causes in 2021.
There is also increased focus by donors protecting forests — funding for forests grew by nearly 70% over the previous year, to $260 million. There was a multi-year $5 billion announcement by nine grant makers, including the Bezos Earth Fund and the Gordon and Betty Moore Foundation. The majority of funding targeted programs to help indigenous and local communities preserve forests.
Human-induced climate change continues to cause widespread disruption to the environment and wellbeing of communities. The cascading affects have exposed millions of people to displacement, health risks, food and water insecurity, especially in developing and emerging economies.
A 2022 State Of The Global Climate report, released by the UN World Meteorological Organization showed that the last eight years have been "the warmest on record, fueled by ever-rising greenhouse gas concentrations".
Greater leadership is needed from governments and businesses to address the climate crisis, warning that efforts to keep the rise in global temperatures to 1.5 degrees above pre-industrial levels is “on life support”.
Net Zero: Emissions Reductions Alone is Not Enough
By 2050 there will be 9.7 billion people on the planet, half of them will be in water-stressed regions, requiring 50 percent more energy.
Sustainability, the new normal for integrated lifestyle and business missions, will continue to drive trends in 2023, challenge us to build trust within our communities and mobilize collective action.
While climate funding is on the rise, more than 2 percent of philanthropic giving needs to be directed to climate mitigation efforts, moving forward.
Many countries raised their ambitions, new pledges and multistakeholder coalitions were forged to address methane gas pollution, deforestation, coal financing, and shipping, among others. The U.S. and China put aside their differences and agreed to boost cooperation around combating climate change in the years ahead.
Private sector actors and the investor community continued to make bold commitments to reach Net Zero, balancing off new greenhouse gas emissions with an equivalent amount of emissions removed from the atmosphere.
Companies’ Stepping Up
Patagonia: Founder Yvon Chouinard and his family transferred ownership to a trust and a nonprofit organization and expect to pay out an annual dividend of roughly $100 million to help fight climate change and protect the planet.
Bill & Melinda Gates Foundation: Pledged $1.4 billion over four years to help smallholder farmers in sub-Saharan Africa and South Asia build resilience and food security through climate-smart agriculture projects, new applications of digital technologies, innovations for smallholder livestock farming, and support for women smallholder farmers.
Bezos Earth Fund: Awarded grants totaling $50 million in support of marine conservation and research in the Pacific Ocean.
Bloomberg Philanthropies: Pledged $204 million to accelerate data-driven policy solutions and community involvement to protect coral reefs, stop illegal fishing, safeguard marine ecosystems and biodiversity.
Amazon + U.S. Agency for International Development: Launched a $56 million public-private partnership to address gender inequities in the climate finance ecosystem and ensure that female entrepreneurs have the resources they need to accelerate innovations in climate solutions.
Role of ESG’s
In the face of confusion about the goals and benefits of Environmental, Social and Governance (ESG) benchmarks, organizations need to better communicate how their business practices mitigate the impacts of climate change in their supply chains and communities.
To avoid further escalation and consolidation of crises, we need transparency and accountability on how a low-carbon transition, which supports the integration of business, employees and communities, is being prioritized – through the lens of the entire Ecosystem.
Clarifying the role of ESG’s includes illustrating the stakes for business and society ‘at large’. Customers and employees want executives and boards to be authentic about social and environmental promises. Also, demonstrate how they align with the long-term health of the business to include workforce development, economic mobility, food security, environmental protection and conservation.
Conclusion
We still have a long way to go increasing and aligning philanthropic collaboration with climate change mitigation strategies. How we address these challenges requires holistic thinking, long-term strategies and clear accountability, connecting and collaborating with cross-industry peers with similar goals.
2023 signifies major milestones to ensure that we make real progress in achieving a more equitable, prosperous, healthier world for future generations.
By: Samantha Taylor - Founder of Reputation Dynamics and Elephant Art Shop
Since 2005, Reputation Dynamics (RD) has committed to addressing social, environmental and human justice issues. RD mobilizes corporations, NGOs/civil society and academia to devise share-valued approaches and develop inclusive partnerships.
Please contact me at:
sam@reputation-dynamics.com