Jeff Bezos’ announcement of his £10bn Earth Fund is the latest high-profile example of a philanthropist committing new money to environmental causes. It is a trend I highlighted last year in my webinar for Optimy who asked me to identify the top philanthropy trends for 2019. I was by no means the first or only person to spot this shift. The Green Funders Network has long been raising awareness of the woeful under-resourcing of the environmental sector – their 2014 report ‘Where the Green Grants Went’ found environmental philanthropy represented less than 4% of total giving by UK foundations.
The shift toward the environment has been gathering momentum
Large funders such as Oak Foundation (and five others) announced their commitment to the Climate Leadership Initiative in 2019 and together these funders have pledged $4bn over five years. Here in the UK, the Association of Charitable Foundation’s launched their Funder Commitment on Climate Change last November, and to date, 34 funders have signed the pledge which includes “We will commit resources to accelerate work that addresses the causes and impacts of climate change.” It is interesting to see that this includes considering all their assets and so is likely to be a further boost to social impact investing.
Recognition that people and planet are connected
Those who have traditionally funded social causes such as health and education are being urged to see the connection between the climate emergency and their core work. Ten Years Time’s report ‘Climate Change & Social Change: How funders can act on both’ makes a strong case for the links between the environment and social needs. For example, the health issues associated with air pollution or the impact of flooding on preserving heritage.
A new generation – the great wealth transfer
The first driver behind this shift is familiar to all of us. Philanthropists and funders will be seeing the same news footage of fires and floods and listening to the urgent appeals of advocates and activists such as Greta Thunberg and David Attenborough. Whilst our response might be changing how we travel or what we eat, the wealthy are in the position to respond with significant amounts of money. The younger generation are another key driver – predictions range upwards from $15 trillion by 2030 in the ‘great wealth transfer’ that sees wealth moving from baby boomers to the next generation. This generation are ecologically aware, often with children who are pressing for change. You can see this in action in the families I work with who are reviewing their giving strategies and considering drawing down capital to reflect the interests of the younger family members. Lastly, there is a rise in interest in matching giving to the Sustainable Development Goals (SDGs) – which include environmental goals – and provides a useful framework for those seeking to give but without the resources to carry out in depth needs analyses or research. Platforms like SDGPhilanthropy and Maanch help funders align their giving with the goals and this is something I have seen Community Foundations increasingly using.
Meeting the call for urgency
Will this shift keep growing? Will more resources continue to flow into environmental causes? Let’s hope so, because the need is great. The UN’s Intergovernmental Panel on Climate Change estimates that $2.4 trillion is needed each year until 2035 to limit temperature rise to below 1.5 °C from pre-industrial levels and an extra $2 to $4 trillion is needed each year to achieve the SDGs.