Why Invest CSR Funds in Climate Projects

Today, on the International Day for Disaster Risk Reduction (#DRRday), I echo and amplify the message "Fund resilience, not disaster". In simple terms, this means invest now in what will keep us safe, so we aren’t left paying the price of disasters later. My highlights for two key priorities- Significantly increase financing for climate risk reduction: Governments, donors, and institutions must prioritise innovative and fit-for-purpose financing/blended finance investments in reducing climate risks. This includes funding for climate-resilient infrastructure, early warning systems, and programs that help communities dynamically adapt to changing conditions. Currently, funding for climate adaptation and risk reduction is far below what is needed, often representing just a fraction of budgets and aid. Increasing investment by crowdsourcing finance climate risk reduction is essential for protecting vulnerable populations and ecosystems. Every dollar spent can save multiple dollars in future losses. This is particularly critical for countries already facing severe climate impacts, which often divert resources from development to emergency response. Make all investments climate risk-informed: Every investment, whether public or private, must incorporate climate risk assessments to ensure resilience. Projects in sectors like water, transportation, energy, and agriculture should be designed to withstand climate impacts, such as extreme weather and rising temperatures, to understand probable maximum risk. The private sector and other sources of finance play a vital role by integrating climate resilience into business practices, ensuring long-term economic stability. Embedding climate risk reduction into all investments aligns with global goals like the #SDGs, #SFDRR and the Paris Agreement. We can safeguard development progress and build a sustainable future. #RiskReduction #SustainableDevelopment #ClimateAdaptation #ResilientCommunities #ClimateFinance #DisasterPrevention #GreenInfrastructure #SDGs #ParisAgreement #EcosystemProtection #InvestInResilience #ClimatePreparedness #FutureProofing

Since we began investing in climate resilience and adaptation solutions in Africa, we are often asked two questions....... ❓ What is the business case to invest in this sector? ❓ What climate resilience and adaptation solutions are you investing in? If you are wondering, it's your lucky day! We just published three briefs on our investment theses and our hot-off-the-press blog on why we invest in this space. TL;DR: Climate change is already impacting virtually every economic sector all over the world. Even as we struggle to develop mitigation and decarbonization solutions that can stabilize the climate below 1.5C of warming, we will still need to live with many of the effects of climate change, such as the prevalence of environmental disasters, increased heat, sea level rise, and more. According to the latest Climate Vulnerability Index, 9 of the 10 world’s most vulnerable countries are in Sub-Saharan Africa.  But the good news is: 🌱 The potential benefits of investing in climate resilience and adaptation are clear, higher agricultural yields, resilient and higher incomes, improved biodiversity, sustainable jobs for the future, and reduced vulnerability to extreme weather events. 🌱 The climate innovation opportunity in Africa is estimated to be valued at a staggering $2.8 trillion by 2030. 🌱 The World Resources Institute reports that every dollar invested in adaptation yields net economic benefits ranging from $2 to $10. 🌱 Private investors have the potential to enter this market early and realize financial returns and impact for generations to come. After reviewing over 3,000 decks and doing deep research in this space, we see opportunities across three main verticals: ☔ Fintech for Climate Resilience: insurtech solutions, digital payment and remittance products, climate data solutions and advanced analytics, carbon finance 👩🌾 Sustainable Livelihoods: tech-enabled solutions for climate-smart agriculture, food systems, land restoration and nature-based solutions 💦 Climate-Smart Essential Services: water/energy management and access, cold storage and cooling, healthtech, waste management This is the time to invest in a more resilient future for all! Malika Anand Maxime Bayen Karen Serem Waithaka Jayson Rai Keeya-Lee Ayre Gabriel Abagalana Juliet Munro Barbara Buchner Anne-Marie Chidzero May Yego Ravinder Sikand Jocelyn Matyas Elias Habbar-Baylac Romi Bhatia Morgan Richmond Ben Broché

Here's the reality: Every $1 invested in disaster risk reduction returns $13 in savings. But only 5% of climate finance goes to projects that help communities adapt to our changing climate, and less than 17% of that reaches local communities.   The gap isn't just about money – it's about getting capital to the places where it can significantly improve physical and economic resilience.   📄 Through Mastercard Center for Inclusive Growth's partnership with The Earthshot Prize, our recent report, "Unlocking Critical Finance for Climate & Economic Resilience" spotlights companies solutions proving that addressing climate impacts and inclusive economic growth go hand-in-hand. From seaweed farming in the Philippines boosting coastal incomes while restoring habitats, to solar solutions reaching 160 million people across Africa.   For Mastercard, supporting financial inclusion is good business– it's essential for building global economic resilience. When we unlock access to savings, credit, and insurance for vulnerable communities, we're not just building economic opportunity. We're building the financial foundation that communities need to adapt, recover, and thrive in the face of climate challenges.   📈The path forward is clear: connect innovators with capital, ensure finance reaches frontline communities, and create inclusive financial systems that serve people and planet alike.   Read the full report in the comments.    #FinancialInclusion #ClimateResilience #InclusiveGrowth

Climate can no longer be "one more theme" in the #philanthropy strategy. Irrespective of what impact area you care about, climate intersects with it deeply -- be it #healthcare, #education, #agriculture, #livelihoods, #gender inclusion and many more. Sameer Shisodia of Rainmatter Foundation and I write in ThePrint that #climate should not be a standalone theme in the philanthropic strategy. Instead, all philanthropic #investments must adopt a climate lens. Otherwise, we are being too myopic about the impact we want to create and the impact may not sustain itself in the very near future. Here's how the #CSR and #philanthropy can integrate a climate lens to their investments: https://lnkd.in/g8aEa224 Council on Energy, Environment and Water (CEEW)