Climate Philanthropy
Climate Philanthropy
Climate philanthropy encompasses the field of organizations that operate against climate change and to promote a sustainable development model. It allocates resources and expertise to actions of mitigation and/or adaptation to the impacts of climate change and climate justice, among others.
In the 1960s, philanthropies emerged with a focus on the defense of the environment, with an emphasis on specific causes such as the protection of animal species, the fight against pesticides such as DDT, and environmental conservation.
With the evolution of the problems arising from the inaction and the worsening of the climate crisis, especially in the last ten years, philanthropies dedicated to the topic or organizations that began to incorporate the climate dimension into their strategies began to emerge.
According to a study by ClimateWorks, philanthropy has more than quadrupled since 2015, the year of the Paris Agreement — jumping from US$ 900 million to more than US$ 3.7 billion in 2022. Between 2015 and 2019, this financing grew on average by around 18% per year. This accelerated to an annual increase of 34% in 2020 and 45% in 2021, the largest percentage growth recorded since 2015. The grants from the foundations for the mitigation of climate change continued to grow in 2022, increasing by 12%, although this represented a slowdown.
However, the funding for climate change mitigation still does not reach 2% of global philanthropy. Therefore, there is a significant amount of space – and urgency – for the growth of the investments in this field around the world.
What is Philanthropy?
Philanthropy is the mobilization of private resources for the common good
It can be done spontaneously and on an ad hoc basis or in a planned and monitored manner, for social, environmental, cultural, or scientific initiatives. It covers initiatives by companies, foundations, and institutes of a business origin or established by families, communities, or individuals.
Philanthropy can go beyond a simple donation or charity by allocating resources strategically or sustainably, including a long-term perspective, supporting the field of the civil society organizations. It often operates in projects or sectors that lack both public and private investments in a wider sense. Consequently, it constitutes an important source of resources to reduce inequalities, promote access to rights and, ultimately, strengthen democracy.
Funding for climate change mitigation still does not reach 2% of global philanthropy
Profile of Brazilian philanthropy: R$ 4.8 billion in resources and a focus on education
According to the GIFE Census 2022-2023, Private Social Investment (PSI) in Brazil had, in 2023, an investment forecast of around R$ 5.6 billion, compared to R$ 4.8 billion in 2022. A total of 20 organizations accounted for more than 70% of the amount invested in 2022.
Supporting companies are the main source of resources (46%), followed by endowment fund income (29%). The strengthening of the social field through the transfer of resources to civil society organizations is the main allocation, followed by academic institutions and impact businesses. In thematic terms, (formal and non-formal) education, the arts and culture and health are the main focus of the resources.
Brazil
GIFE (Group of Institutes, Foundations and Companies)
Established as an organization in 1995, GIFE is a reference in the country in private social investment.
Brings together thematic and community funds and community foundations and independent grantmakers, which mobilize the resources to support groups, collectives, movements and civil society organizations that operate in the fields of socioenvironmental justice, human rights, and community development.
PIPA has the mission of contributing to democratizing the access to private social investment in Brazil, promoting access to philanthropic resources to organizations, collectives and movements based in the peripheries.
IDIS (Institute for the Development of Social Investment)
Supports private social investment and its impact, with a focus on the reduction of socioenvironmental inequalities in the country.
International
Community of leaders and agents of change committed to guaranteeing that philanthropy is a catalyst for social progress.
Global platform of philanthropy, based in the United States, which focuses on high-impact climate solutions.
Non-profit organization that acts as a think-tank and project center. Based in Berlin (Germany), it focuses on projects in the Middle East, the Mediterranean, and other locations.
A network of philanthropy professionals