2023 Conscious Commerce Trends: By Samantha Taylor

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

Sustainable Development Trends 2020: Bridging the Gap: Corporate Social Responsibility and Strategic Innovation

While progress has been made in support of the Sustainability Development goals (SDG’s), gaps ensue mitigating climate change’s disruptions on people’s live, migratory patterns and getting out of poverty. 

Earth’s climate is going through unprecedented changes in the history of modern civilization as a result of human behaviors. Without adaptation and mitigation strategies, substantial damages to the U.S. economy, environment, human health and well-being will continue to increase over the coming decades.  These include increasing greenhouse gas emissions, higher temperature extremes, heavy precipitation, flooding and wildfires. This is influencing the movement of humans, marine and wildlife species to find better places to live and survive in and outside of cities.

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. 

While the CSR movement has raised the bar for companies to have ethical brands, products and services, considerable investments and collaboration across multiple industries, supply chains will be required for transformative change and disruption, transitioning to the corporate social innovation movement. 

 A recap of the realities we face:

Climate Change: Extreme weather events, reduction in worker productivity could cause major global economic losses unless greenhouse gas emissions are significantly reduced in the next few decades, according to a series of reports from the United Nations and global financial institutions and revealing that climate change signifies economic risk. In the U.S. alone, if greenhouse gas emissions are not significantly reduced the country could see a 10 percent cut in real income by 2100. 

STEM Education: Women are still considered a minority in the fields related to science and technology, both in education and professions. According to the UNESCO report Cracking the Code, only 35% of all students in STEM higher education around the world are women. According to Girls Who Code, less than 20 percent of computer science graduates are women. Today, only 24 percent of computer scientists are women, and by 2027, just 22 percent of women will be represented in the field.

Oceans: Nearly half of the ocean’s marine populations have declined over the last 45 years. About 13 million tones of plastic leak into our oceans every year, harming biodiversity, economies and health.  By 2050, there will be more plastic than fish if we keep producing (and failing to properly dispose of) plastics at predicted rates, plastics in the ocean will outweigh fish pound for pound in 2050, according to a report by theEllen MacArthur Foundationand World Economic Forum. 

Wildlife Species: In just 20 years African elephants could be gone.  Despite the ivory ban in 1989, elephants continue to be slaughtered with only half the number of elephants left. Approximately 100 African elephants are killed each day by poachers seeking ivory leaving 430,000 remaining. Elephants are a critical species as they create and maintain the ecosystems in which they live and for other plant and animal species to also survive.

Women and Girls: Gender inequality is a major cause and effect of hunger and poverty: it is estimated that 60 percent of chronically hungry people are women and girls (Source: WFP Gender Policy and Strategy). Women make up more than two-thirds of the world's 796 million illiterate people.

Reputation Dynamics: Predictions for 2020:

Impact Investing: Recent growth in impact investing has come from a surge in interest from millennials — investors born between the mid 1980s and the early 2000s.  The impact investing industry is estimated at USD 502 billion as of 2018. The growing impact investment market provides capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, affordable basic needs including housing, healthcare, and education. Several of the world’s biggest money managers have entered impact investing, including UBS Wealth Management and Goldman Sachs Asset Management. Non-profits such as the Ford Foundation and the Michael & Susan Dell Foundation have also made commitments.

Empower Consumers: Nearly two-thirds (63%) of surveyed global consumers prefer to purchase products and services from companies that stand for a purpose that reflects their own values and beliefs, and will avoid companies that don't, according to new Accenture research shared with Marketing Dive. Among consumers, 62% want companies to take a stand on the social, cultural, environmental and political issues that they care about the most.

Mission-related Investments: U.S. foundations are leading the way in MRI following the announcement just last year by the Ford Foundation that it will commit USD 1 billion of its 12 billion endowments to MRIs over the next ten years; this is the largest commitment of philanthropic endowment to impact investing. The Foundation will be focusing on investments in affordable housing in the U.S. and access to financial services in emerging markets.

Reset the CSI Framework: This entails devising the long-term strategic goals, a greater emphasis on research and development, human development, proper selection and alignment with NGO/civil society partners, measurements and mission-related investments.  

Gender-lens Investing: Gender lens, gender-focused investing is one of the fastest growing segments. Gender lens investing integrates gender-based factors into investment decisions with goals ranging from enhancing risk-adjusted returns to driving gender equality. The International Finance Corporation (IFC) estimates a $320 billion financing gap for female entrepreneurs in small and medium enterprises in developing countries alone. According to the World Economic Forum’smost recent Global Gender Gap Report, this trend could continue for years: at current rates of progress toward gender parity, the gender gap will close in 61 years in Western Europe, 70 years in South Asia, 171 years in East Asia and the Pacific and 165 years in North America

Conclusions: Mere checkbook philanthropy will not suffice

Bridging the gap between CSR and corporate social innovation will require a long-term sustainable approach. This entails enforcement throughout the organization, business units, supply chains, listening to and influencing customer behaviors including unlocking the power of human potential within the employee base. Businesses have the opportunity to leverage the diversity of their communities, philanthropic commitments and people they influence within their ecosystems. 

In turn, authentic brand and marketing campaigns can educate, advocate and empower the public at large to be part of addressing our pressing social and environmental challenges on a more united front, lifting people out of poverty and improving livelihoods. 

By: Samantha Taylor - Founder of Reputation Dynamics 

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.

I look forward to connecting with peers who are making the world a better place, advancing the Sustainable Development Goals. Please contact me at:  

sam@reputation-dynamics.com

The Power of Private-Public Partnerships: Deconstructing Gender Bias for Resilient Communities

Multiple events such as UNGA, Women’s Funding Network conference, Concordia Summit, Global Goals for Sustainable Development, Bill & Melinda Gates Goalkeepers, have mobilized determined leaders in dialogues about ideas and commitments to investing in the world’s poor.  

Despite the current administration, challenging global economy and unprecedented global disasters, voices are amplified about gender equality for all.   

However, the gap between making women and men equal partners in the economy and society remains significant. In fact, according to the World Economic Forum’s Global Gender Gap Report, economic gender equality is predicated not be achieved for another 170 years. 

Equal access is fundamental to society stability, ensuring resilient communities for the long-term.

Yet, the world’s political, cultural, humanitarian and environmental issues continue to be disrupted by the complexities of non-equal access and discrimination.

A recap of the realities we face:

• Wage Gap: Women generally earn 79 cents for every dollar men earn
• Women of Color: Occupy only 11.9 percent of managerial and professional positions
• Executive Positions: Women hold 29/5.8% of CEO positions at S&P 500 companies
• Poverty: In the U.S. in 2016, more than one in eight women, more than 16.9 million, lived in poverty.  14.5 million poor children, more than half, live in families headed by women
• Human Trafficking: At least 21 million adults and children are bought and sold worldwide into commercial sexual servitude, forced labor and bonded labor.  Around $32 billion profits are generated

Oxford Dictionary’s Definition of Gender Equality = ‘The state in which access to rights or opportunities is unaffected by gender’

Gender and racial inequality is not only a pressing moral issue, it is also a critical economic challenge.   

Women = 50 percent of the population: 

Improving the livelihoods of women and girls represents the single biggest opportunity for cultural, human and economic development.

According to a new McKinsey Global Institute report, $12 trillion could be added to global GDP by 2025 by advancing women’s equality. In addition, women are the world’s most powerful consumers controlling 65% of consumer spending.

Outdated norms and gender stereotypes are impeding achieving the systemic change required to better integrate women into society, holding back the global economic growth that will come from increased gender equality and women’s empowerment.

What is fundamental to success is deconstructing the roots of gender bias early.  Mitigating negative perceptions about both men and women in leadership and role in communities represents a powerful ripple effect, benefitting families, communities, workplaces and economies at large.

Now more than ever before, women around the world are poised to make significant progress but are faced with several issues which need to be addressed:

• Lack of economic security
• Domestic violence
• Lack of access to education and healthcare

To be sure, if women do not achieve their full economic potential, the global economy will continue to suffer. Investing in women and girls, creates more stable families and communities.

A Powerful Solution - Private-public partnerships:

The U.S. devotes less than 1% of its annual budget to foreign aid with Trump recommending a 30% cut to the State Department’s budget including funding for USAID’s critical health programs.

 While U.S. foreign-aid programs have helped women and children fight disease and poverty, have access to basic needs, the public and private sectors are further poised to mobilize and action programs that close gender gaps in the workplace and communities at large.

Support of SDG goal 5, achieve gender equality and empower all women and girls. Includes raising the bar on sector expertise and programs that enable economic security, mitigate domestic violence, ensure access to education and health. 

For example, an Intel analysis states that making the Internet accessible to 600 million women and girls (40 percent from developing countries) could generate an estimated $13-18 billion in annual GDP across 144 developing nations.

A diverse range of for-profit and nonprofit organizations from multiple sectors are on the front lines of scaling up programs, partners and stated impacts for women and girls. Organizations of note include Coca-Cola’s 5X20, GAP P.A.C.E, Unilever’s Sustainable Living Plan, the Akola Project and The Women’s Funding Network.

The power of private-public partnerships can take these complex problems and distill them down into concrete concepts, implementable programs that have measurable impact and long-term sustainability.

Shared value add dialogues, co-creation and design of programs at the local and global level with businesses, academia, nonprofits will continue to be essential for systemic change and improving livelihoods of women and girls.

Stay the Course: Transformative Change:

When people are inflicted by disasters and trapped in the cycle of poverty, ‘We the People’ are all at risk both at a local and global level.

Investing in the world’s poor remains a priority along with ensuring economic security and mitigating violence among women and girls.  This requires a renewed focus on scalable economic development and capacity building, opportunities for job training and employment for underserved populations, consistent access to basic needs and investments in children’s education.

By Samantha Taylor, President of Reputation Dynamics.

Sources:

• McKinsey Report - http://www.mckinsey.com/global-themes/employment-and-growth/how-advancing-womens-equality-can-add-12-trillion-to-global-growth
• Partner Spotlight: The Women’s Funding Network is the largest network of foundations devoted to women and girls. We empower over 100 foundations, spanning 6 continents, to incubate, lead programs, and take collective action to solve complex social and economic issues - www.womenfundingnetwork.org

About Reputation Dynamics: Since 2005, Reputation Dynamics (RD) has been committed to addressing social, environmental and human justice issues. RD mobilizes corporations, NGOs/civil society and academia to devise share-valued approaches for community development and improvement of livelihoods.

Please contact me for a dialogue about creating successful private-public partnerships - sam@reputation-dynamics.com