Philanthropy has a climate emergency problem.
And here's the thing:
We can't ask grantees to solve the crisis if our investments are fueling it. If philanthropy owns stock in fossil fuels, we own climate change.
A thread on why that really matters.👇
And here's the thing:
We can't ask grantees to solve the crisis if our investments are fueling it. If philanthropy owns stock in fossil fuels, we own climate change.
A thread on why that really matters.👇
Wallace Global Fund has supported the movement for fossil fuel divestment since its inception. We’ve worked directly with advocates, activists, organizations, and the broader philanthropic community to get fossil fuels out of all of our investments. We started 10 years ago.
And after years of work, today we are proud to stand alongside 200 other philanthropic foundations who have committed to divest from fossil fuels and INVEST in environmentally sustainable solutions.
Philanthropy must heed the demands of the climate movement it claims to support. Any foundation – let alone one working in climate or environment – has a moral imperative to divest itself of fossil fuel investments. We must be part of the solution, not the problem.
Our industry must lead by example. Many foundations claim that getting out of fossil fuels might damage their investments, reducing their ability to fund environmental program work. But actually, research shows that portfolios without fossil fuels are performing even better.
Fossil fuel investments are also high-risk holdings, particularly as the world is increasingly subject to the horrifying and life-altering effects of climate change.
Why would any foundation want to both underperform financially and harm communities philanthropy should serve?
Why would any foundation want to both underperform financially and harm communities philanthropy should serve?
Opponents of divestment say they can use investment profits to fund climate/environment work. They fail to acknowledge that grants won’t matter in the long term if we don’t stop Big Oil from blocking progress. Big Oil has more money than any grant & spends it to block progress.
As WGF’s @EllenD35 , philanthropies “receive charitable tax status because they serve the public good. Their investments should not undercut the public good.”
Divesting from fuels is vital, but it isn’t the only step. Philanthropy must also invest in solutions, committing 5%+ of assets towards program work supporting new clean energy infrastructure, addressing energy access for 1bn & supporting just transition for extractive workers.
Foundations have a choice; they can pretend it’s business as usual as the world burns, or they can use their immense power and privilege to take a stand that leads to a better world.
We've made our decision, and we're standing alongside our grantees every step of the way.
We've made our decision, and we're standing alongside our grantees every step of the way.
As WGF’s @EllenD35 says, philanthropies “receive charitable tax status because they serve the public good. Their investments should not undercut the public good.”
