Undervaluing the urgency
The season of giving might technically be over, but the philanthropic sector works year-round. Philanthropy provides crucial support to issues of worldwide importance, yet it lags dangerously behind in addressing the most pressing issue of our time: climate change. In 2020 total philanthropic giving stood at US$750bn. Only an estimated US$6bn-10bn (0.8-1.3%) was directed towards climate-change mitigation.
In 2020, philanthropy directed towards climate-change mitigation was valued at US$6bn-10bn, accounting for less than 2% of global philanthropic aid.
The bright side
Fortunately, climate-related philanthropy grew more from 2019 to 2020 (by 14%) than overall philanthropy (3%). Moreover, philanthropic giving has either matched or surpassed the pledges made at the Global Climate Action Summit in 2018, indicating that there is serious potential in this field to meet its obligations and create an impact.
In 2020 climate-related giving focused on a range of issues, including equity and social justice. The Donors of Colour Network launched the Climate Funders Justice Pledge. Their aim is to get the top 40 US climate donors to increase giving for climate-justice groups with leaders who are black, indigenous, or people of colour by at least 30% within two years.
With great power comes great responsibility
The effects of climate change are impossible for philanthropists to ignore, and the potential for the sector to play a key role in their mitigation is huge. More donors have begun to divert funds to climate causes. Last year’s COP26 summit saw several philanthropic foundations pledging their much-needed fortunes, and the advent of coalitions such as Philanthropy for Climate affirm this vital relationship. The recent rise of cross-company, cross-sector collaboratives to tackle climate change is a similarly encouraging trend.
Momentum created by major donors like Michael Bloomberg, Stewart and Lynda Resnick, Laurene Powell Jobs, and Hansjörg Wyss should be nurtured. Climate-related initiatives where philanthropy can be directed are plentiful, from clean energy to community resilience, reforestation and beyond. Although it is difficult to estimate a definitive sum, most agree that trillions in investment will be needed to avoid the worst effects of climate change. What is certain, however, is that philanthropic support directed towards climate-mitigation initiatives can play a vital role.
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