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illuminem summarizes for you the essential news of the day. Read the full piece on World Economic Forum or enjoy below:
🗞️ Driving the news: The role of philanthropy in combating climate change is evolving beyond traditional grant-making
• While grants are crucial, only a small portion of philanthropic giving currently goes to climate mitigation, highlighting the need for broader engagement, including using investment capital to drive change.
🔭 The context: Foundations like the Sierra Club Foundation and the McKnight Foundation are pioneering efforts to align their investments with climate goals
• Despite challenges, such as the lack of a clear playbook and concerns over financial returns, these organizations are showing that it is possible to achieve both climate impact and financial success.
🌍 Why it matters: By leveraging investment capital, foundations can amplify their impact, driving significant real-world emissions reductions and promoting equitable climate action
• This approach aligns with broader diversity, equity, and inclusion goals, ensuring a just transition to a sustainable future.
⏭️ What's next: The philanthropic community is focusing on collaboration, transparency, and shared learning to drive systemic climate solutions
• Foundations are encouraged to mobilize networks, share knowledge, and increase transparency to catalyze a broader shift toward impactful climate action.
📈 One stat: Only 2% of philanthropic giving is currently directed toward climate mitigation, underscoring the need for more significant investment in this critical area.
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