Canadian philanthropists sign onto pledge to fund climate change action

As world leaders meet to hammer out a new green deal at COP26, philanthropies across the country are committing to taking action on climate change. They are signing onto the Canadian Philanthropic Commitment to Climate Change — a first-of-its kind pledge — that calls on all funders to address the climate emergency regardless of their missions.

“We are way past the point of climate change being a special interest topic or a radical issue. This is an all-hands-on-deck moment,” said Devika Shah, executive director of Environment Funders Canada (EFC), in an interview with Research Money. "I'm hoping people start to understand that no matter what you fund in the philanthropic world, you need to do your part to respond to the global crisis.”

The pledge is a joint initiative from four funder networks: EFC, Philanthropic Foundations Canada, Community Foundations of Canada and The Circle on Philanthropy and Aboriginal Peoples Canada. It was inspired by the #PhilanthropyForClimate movement, launched globally by WINGS, a network of philanthropy development and support organizations. 

Thirteen funders have already signed the Canadian Commitment, including the Trottier Family Foundation, the Toronto Foundation, Ivey Foundation, Inspirit Foundation and Makeway. The goal is to have 100 signatories by June 2022. 

“When enough people prioritize something, it shifts entire systems,” said Shah.

The philanthropic sector has the opportunity to show Canadians the way forward and "help them see the future, believe in it and be excited about it," she said.

Philanthropic funding for climate action still insufficient

In the lead-up to COP26, billionaire donors such as Michael Bloomberg, Laurene Powell Jobs and Jeff Bezos pledged to support the fight against climate change. But even with these new commitments, spending on climate action is scant. A funding trends report released by the ClimateWorks Foundation found that in 2019 less than 2 percent of philanthropic giving globally was dedicated to climate change mitigation. Similarly, an article by McKinsey & Company reported that only $320 million of the $64 billion dispersed by U.S. grantmakers in 2020 (approximately 0.5 percent) went directly toward climate change. 

Shah said data from a decade ago suggests spending by Canadian grantmakers is similar.  

The new pledge aims to change that. One of its seven pillars of action focuses on the “commitment of resources” and calls on signatories to use those resources "to accelerate work that will address the root causes of climate change or adaption to its impacts.”

Philanthropies have a broad range of funding mechanisms, including grants, venture philanthropy, competitions and prizes. Those could be used to support R&D on decarbonization or adaptation, create markets for new technologies or support infrastructure.

However, the pledge goes beyond funding, urging philanthropies to use any and all of their resources as well as their independence and influence to address the growing climate emergency. For example, the pledge's fourth pillar, "endowments and assets," requires signatories to adopt investment strategies that support "a rapid and just transition to a net-zero economy.”

Shah said the Canadian Commitment is unique in two ways. First, it recognizes the value of Indigenous stewardship, and second, it is accompanied by an implementation plan that will help funders turn their commitment into tangible action. 

“I think philanthropy is the sector that is best-positioned to play a catalytic role,” said Shah, adding that philanthropic funding can unlock the tremendous resources that government and industry have at their disposal and raise the bar on performance in those other sectors. “I think philanthropy has a huge role to play even though relatively speaking, our dollars are much less.”

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