Founders Pledge Climate Change Fund: A New Approach to Sustainability

The Founders Pledge Climate Change Fund is a unique approach to sustainability that's gaining traction among entrepreneurs and investors. It's a pledge to give away a significant portion of one's wealth to address climate change.

The fund is a key component of the Founders Pledge, a network of entrepreneurs who have collectively pledged over £1 billion to tackle climate change. This pledge is not just a promise, but a commitment to making a tangible impact.

One of the founders, Jonny Paul, has already donated £1 million to the fund, which will be used to support projects that reduce greenhouse gas emissions and promote sustainable land use. This kind of commitment is inspiring others to follow suit.

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The Fund is a crucial part of addressing climate change, and it's making a significant impact. With $7,394,867 invested in 2023, the Fund is estimated to avert 51 million tonnes in CO2-equivalent emissions.

The Fund is focused on leveraging each dollar to fund the most effective, neglected climate solutions. This includes accelerating innovation in neglected technologies, catalytically growing the most effective climate organizations, and promoting policy leadership and paradigm shaping.

Here are some key areas where the Fund is making a difference:

We estimate grants to high-impact recipients in 2023.

Our estimates suggest that the money granted from the Fund in 2023 could avert 51 million tonnes in CO2-equivalent emissions.

This is comparable to taking 11.1 million cars off the road for a year, which is a staggering impact.

We invested in scaling our work to make these estimates possible, bringing in experts to grow our climate research team.

These experts are helping us build a comprehensive suite of tools to drive our high-impact grant-making, including modeling the effect of different advocacy opportunities.

We're also using these tools to analyze emissions streams and model carbon lock-in interventions, which will help us make even more effective grant decisions in the future.

We're facing a complex problem with climate change, but it's not too late to make a difference. Every year, over $1 trillion of social spending and $10 billion in philanthropic donations is spent on it.

The problem is that much of this money isn't being used effectively, due to biases and blindspots in traditional solutions. This is where Our Climate Change Fund (CCF) comes in, aiming to leverage each dollar and fund the most effective, neglected climate solutions.

The CCF is working to accelerate innovation in neglected technologies, catalytically grow the most effective climate organizations, and promote policy leadership and paradigm shaping. This means finding new, innovative ways to address climate change, supporting organizations that are already making a big impact, and advocating for policies that support a sustainable future.

Here are some of the ways the CCF is making a difference:

By supporting the CCF, you can be part of the solution to climate change.

We take a thoughtful approach to philanthropy, considering multiple factors to maximize our impact. We're thinking globally, researching various geographies to capitalize on new opportunities and hedge against negative political developments.

Our outlook remains global, with a focus on emerging economies, where 95 percent of new energy demand to 2035 will be. We're aware that while these countries aren't responsible for the majority of climate change, their energy trajectories will significantly influence global warming.

We're also aware that global climate philanthropy tends to neglect emerging economies, with only about a third of funding flowing to these jurisdictions. This presents an opportunity for us to leverage our impact by promoting clean energy-driven economic development.

To avoid conflicts between energy poverty and climate change mitigation, we're looking for "sweet spot" opportunities that benefit both the climate and local communities. We're exploring different interventions, including accelerating energy innovation, to find the highest-impact opportunities.

Time is a crucial factor in our approach. We're thinking carefully about timing, supporting opportunities that can be leveraged right now, while also investing in organizations that can grow and have a greater impact over time.

We're committed to a lean team and a research-driven approach, which allows us to be strategic, bold, and laser-focused on impact.

Consider reading: Time Change

Founders Pledge was initially launched in 2015 by the Founders Forum for Good, which focuses on helping social entrepreneurs build and scale businesses.

The organization was named one of the New Radicals 2016, recognizing its innovative approach to making a real difference in society.

Founders Pledge has since expanded to multiple offices in cities like London, Berlin, New York, and San Francisco, and has launched partnerships with organizations such as Y Combinator and MassChallenge.

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Growing a highly effective organization requires a strategic approach and significant support.

$13.2m in grants from Founders Pledge members and the Climate Change Fund since 2018 has helped an advocacy nonprofit expand and achieve success.

Since 2018, our climate strategy has prioritized supporting innovation in neglected low-carbon technologies, which has been a game-changer for organizations like the Clean Air Task Force (CATF).

The CATF has been our top climate recommendation since 2018, with a strong track record of achieving major policy changes over more than 25 years of research and advocacy.

On a similar theme: Ford Climate Control

Four years of recommending and granting to CATF catalyzed their growth, changing the trajectory of the organization in a significant way.

Climate Change Fund (CCF) grants supported advocacy that contributed to key climate legislation in the US in 2022, including the IIJA and IRA.

CATF also launched the Carbon-Free Technology Initiative and the Country Methane Abatement Tool, expanding their efforts to decarbonize the global energy system.

Founders Pledge was initially launched in 2015 by the Founders Forum for Good, which focuses on helping social entrepreneurs build and scale businesses.

The organization was influenced by the work of 80,000 Hours, a group that has clearly made a significant impact on the trajectory of Founders Pledge.

Founders Pledge was named one of the New Radicals in 2016, a prestigious honor that recognizes innovative projects making a real difference to society.

The organization started in London but has since expanded to cities like Berlin, New York, and San Francisco, demonstrating its growth and reach.

Founders Pledge has formed partnerships with notable organizations, including Y Combinator, MassChallenge, and Forward Partners, further solidifying its position in the social entrepreneurship space.

In 2023, Founders Pledge made a remarkable impact by moving $168 million to the charitable sector on a budget of just $8.2 million, resulting in an impressive ROI of over 20:1.