Giving Compass' Take:
- Here are five strategies for companies to implement in climate finance and utilize resources necessary to fight climate change.
- How can donors work with companies to ensure collaborative and coordinated climate action?
- Learn about new approaches to climate finance.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
With climate change and extreme weather impacting everything from supply chain costs to workforce productivity, corporate climate action is no longer just a gesture of goodwill — it’s a business imperative.
Many companies are meeting the moment, with a third of the world’s largest companies setting net zero commitments. But only 7% are actually on track, requiring bigger and bolder action from the private sector. To reach corporate goals and limit global warming to 1.5°C, we need all hands on deck.
At Salesforce, this means using our full capital spectrum for climate action – including how we raise and deploy capital. Historically, we’ve taken a piecemeal approach, using different forms of capital, including philanthropy, venture capital, purchasing power, sustainability bonds and carbon credits – sometimes in isolation from one another.
In partnership with the Climate Policy Initiative, and based on conversations with 18 peer companies, we developed a blueprint to do just this. This includes a taxonomy of basic corporate finance tools, guidance on when and how to use them for climate efforts and a framework for influencing key decision-makers.
No matter where you are in your journey, here are five steps to activate multiple forms of capital for climate action.
- Understand your goals and the tradeoffs you're willing to make
- Work with key stakeholders to weigh these objectives and gain buy-in
- Explore your climate finance options and what it would take to activate them
- Put it all together to build a holistic climate finance strategy that optimizes for your goals, using your limited resources
- Proactively prepare for big 'climate moments' so you can be ready with a comprehensive climate finance plan.
Read the full article about climate finance by Naomi Morenzoni at World Economic Forum.