Our thinking

Untapped trillion

1 November, 2024

What percentage of philanthropic giving do you think goes to climate-related causes (everything from climate change, nature, conservation to animal welfare)? When we asked around the Good Business office, guesses ranged from 10%-45%. We were all wrong. The actual figure is just 2%. 

This revelation shocked us. Why is the climate crisis—the biggest issue facing humanity—being largely ignored when people and organisations choose causes to support? And why does it matter? Adam Fraser, CEO of Terraset and a friend of Good Business, has recently written about this pressing issue. 

While philanthropy alone cannot solve the climate crisis, it plays a crucial role within the capital stack—the various layers of financing needed to fund climate-related projects and technologies. The global philanthropic market exceeds $800 billion annually and is expected to surpass a trillion dollars in the coming years. This trillion-dollar market represents a significant opportunity in our efforts to address the climate crisis. 

Philanthropic capital also allows for rapid investment into innovation. Adam highlights that there are solutions, particularly for carbon removals, that need funding now to develop high-quality projects that can be scaled 

We need to help people understand the impact that philanthropic donations can have on the climate crisis, rather than relying solely on government or the private sector. This involves better communication about innovative climate solutions and the genuine change they can bring, supported by transparent and measurable data.  

Some organisations are excelling in this area and gaining significant publicity for their efforts. For example, Patagonia’s donations to environmental causes and the Rockefeller Foundation who recently shifted their focus entirely to climate change. We need more organisations to follow their lead and unlock more than 2% of that trillion-dollar market. 

By Alice Railton