Badr Jafar, COP28 Special Representative for business and philanthropy and CEO of Crescent Enterprises, said philanthropy has an integral role in catalysing climate action both globally, but less than 2 percent of philanthropic funding globally is currently directed towards climate causes.
Climate philanthropy can be the glue that binds business, government, and civil society together in concerted action to achieve our net zero and nature positive goals,” Jafar said, addressing a panel discussion organised by the London Business School (LBS) on Tuesday.
He said private philanthropy stands at well over $1 trillion annually, which is more than 5 times the official development assistance from governments.
“Strategic philanthropy has the ability to deploy flexible, risk-tolerant, and patient capital in ways that uniquely leverage business and government capital and create that multiplier effect,” he said, emphasizing that role of philanthropy in tackling environmental challenges.
Jafar said with projections of $4 trillion to $9 trillion per year required to support net zero and nature positive goals, COP28 in the UAE will raise the bar in terms of ambition and the creation of a global architecture for all capital actors to act together at speed and at scale.
Philanthropic leaders tackle global challenges
The plenary symposium exploring the theme ‘Forever Forward Thinking: The Power of Philanthropy’ brought together prominent philanthropic leaders from different regions of the world to examine the pivotal role of philanthropy in tackling pressing global challenges.
The panel discussion, introduced by François Ortalo-Magné, Dean of LBS, also had Batia Ofer, founder of Art of Wishes, and Sir Lloyd Dorfman, CVO CBE, founder of Travelex Group, as speakers.
The discussion delved into the different practices of philanthropy around the world, and its evolving significance as a form of catalytic capital to scale solutions in the face of global issues such as climate change.
Jafar also shared practical perspectives on philanthropy, tracing its evolution from traditional charity to a more strategic and impact-focused approach.
“The key distinction between charity and philanthropy lies in viewing strategic philanthropy as an impact driven, results focused form of giving. It is rooted in disciplined planning and execution, with diligent follow through to achieve desired outcomes,” he said.
Highlighting the role of businesses and philanthropy in addressing societal and environmental challenges, Jafar said: “Businesses need to see themselves as the real agents of positive change. With the latest paradigm shift taking place around the role of business, they are now fully expected to be positive change agents for social and environmental causes.”
Looking ahead, the panel also discussed emerging trends in philanthropy, including the anticipated intergenerational wealth transfer and technology’s influence on reshaping philanthropic engagement.
“Over the next 15 years, $68 trillion is expected to be passed down to the next generation globally, making it the largest intergenerational wealth transfer in history. With the growth of digital platforms, we are seeing a shift from a ‘one-to-many’ model of philanthropy, to a ‘many to one’ model, where entities seeking help can source smaller donations from an infinite pool of ‘retail’ donors,” said Jafar.
The panel also discussed the rise of collaboration among philanthropists, who are co-investing resources to achieve common goals.
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