The Role of Corporate Philanthropy in Accelerating Climate and Nature Transitions
Executive Summary
This white paper explores the role corporate philanthropy can play in the climate and nature fields, bridging the gap between public and private sector perspectives. Key findings include:
- Less Than 5% of Corporate Philanthropy: Only 4-5% of corporate philanthropic funding is directed towards climate and nature themes.
- Growth in Corporate Philanthropy: The share of corporate philanthropic funding to climate and nature themes increased by 78% from 2018 to 2022, from $268 million to $607 million.
- Unique Tools: Corporate philanthropy leverages both funding (grants, impact investments) and non-funding resources (technical assets, advisory support, employee volunteer time, networks).
- Case Studies:
- Google.org: Funded the Woodwell Climate Research Center's work on permafrost thaw.
- FedEx: Provided $100 million to establish the Yale Center for Natural Carbon Capture.
- Salesforce: Supported the Mangrove Breakthrough through grants, expert guidance, and network connections.
Key Findings
- Corporate Philanthropy and Climate/Nature: Less than 5% of global corporate philanthropic funding is directed towards climate and nature-related themes, with much of it concentrated among 20 actors.
- Growth in Funding: The share of corporate philanthropic funding to climate and nature themes grew by 78% from 2018 to 2022.
- Non-Funding Tools: Non-funding resources like technical assets, advisory support, and employee volunteer time are crucial for launching and maintaining climate and nature programs.
- Impact Multipliers: Non-funding tools help manage balance sheet volatility, multiply the impact of funding, and influence grantee strategies.
Challenges and Opportunities
- Data Needs: Improved data on corporate philanthropy is essential for increasing collaboration and impact.
- Transparency: Collective efforts to increase voluntary data disclosures can enhance transparency and facilitate better alignment between companies and recipients.
- Collaboration: Enhanced transparency can encourage collaboration among peers and partners, supporting the refinement of corporate philanthropy strategies.
Introduction
Philanthropy has been instrumental in accelerating climate and nature action by providing grant-making, advisory capacity, and participation in the broader ecosystem of decision-makers. Corporate philanthropy can play a unique role by bridging private and philanthropic actions, offering both funding and non-funding activities. From 2018 to 2022, less than 5% of global corporate philanthropic funding was directed towards climate and nature themes.