05 November 2007
Green philanthropy Q&A
Bernard Mercer, author of NPC's report Green philanthropy, answers some topical questions on environmental issues — and how charities are tackling them.
What is the evidence for environmental problems such as climate change?
Scientists agree that issues like climate change, population growth and over-consumption of natural resources pose a serious threat to the planet’s environment. The evidence points to this and can be found in respected reports such as the 2001 and 2007 Intergovernmental Panel on Climate Change (IPCC) reports; the Stern Review on the Economics of Climate Change (2006); and the UN Millennium Ecosystem Assessment (2005). NPC's report, Green philanthropy, draws information from these and other authoritative sources. In total, over 400 reports and articles are referenced. Green philanthropy also draws on 130 consultations with experts, charities and funders in the UK, US and Europe.
Do you think that, by focusing on climate change, we’re focusing on the wrong thing?
Climate change is a major problem — its growing profile is a great step forward. We need to act now to tackle greenhouse gas emissions that emanate from urban and industrial sources. But an informed debate is needed on the whole spectrum of environment problems. This must recognise that we need to also act to protect natural resources, ecosystems and biodiversity.
Isn’t protecting the environment government’s responsibility?
Governments and the international community have an important role to play in tackling environmental problems. Green philanthropy explores this role, concluding that international action by governments is vitally important, for example, in agreeing a successor to the Kyoto Protocol. Past efforts have also yielded significant results (eg, the Montreal Protocol on CFCs that threaten the ozone layer).
But governments and the international community cannot, and should not be expected to solve these problems alone. Green philanthropy found that charities play a key role in tackling environment problems. They work alongside governments to identify and implement solutions. They are also watchdogs, monitoring and highlighting where governmental and international action is insufficient or non-existent.
Isn’t the market already delivering solutions to these problems — like carbon trading and hybrid cars?
There is huge potential for market-based solutions — current initiatives in the business and financial sectors show this. But Green philanthropy found that in many cases environment charities play a role in these solutions. An example is the rise of certification schemes in which producers, retailers and consumers come together to grow markets for sustainably grown, caught or produced goods (eg, fish, coffee, tea and bananas). These schemes are usually coordinated by charities (eg, Marine Stewardship Council, Rainforest Alliance, Fairtrade). This is because charities are uniquely qualified by virtue of their independence, focus on environmental and social goals and credibility and integrity as organisations. Our report found that the potential for more certification schemes, for both goods and services is very great, but progress is constrained by too little funding.
What are you recommending that donors do?
Donors should read Green philanthropy — it is relevant both to experienced green philanthropists and those who have never considered giving to environmental charities. The report — the first of its kind — provides practical information and advice to philanthropists on supporting environment charities.
An increase in the number of funders is the environment sector’s most pressing need. Green philanthropy encourages more donors to support charities that are tackling the range of environmental issues so that these charities can make a greater difference. Funding is needed as a priority to support innovative approaches.
Green philanthropy also encourages donors to get together and share experiences of what works. This has been shown in other areas to boost funding. Through learning from others and working together, more can be achieved.
Finally, Green philanthropy recommends that donors fund organisations that can provide practical information to help donors make informed decisions; fund environment charities for longer periods of time — in some cases, for example, a decade’s funding is required; and fund charities that can demonstrate the effectiveness of their approach.
What kind of ‘social returns’ can donors who invest in this area get?
Donors can expect to achieve remarkable returns through supporting environmental charities. To demonstrate this, NPC has calculated the return achieved by a donation to Global Witness, the UK-based charity that works to combat human rights and natural resources abuses. A £5 donation to Global Witness will stop 2 trees being cut down, protecting them indefinitely. Another £5 the following year will stop 2 more trees being cut down — meaning in 5 years time you will have saved 10 trees from being cut down.
This is twice the return achieved by a carbon offsetting scheme in the first year alone — and ten times the return after the five years.
Why did you produce an environment report when NPC’s focus is on human welfare?
Green philanthropy shows that environment problems are inter-connected with human welfare. This is nowhere more evident than in developing countries, where poverty is both a cause and a consequence of environmental degradation. It is important to stop treating human welfare and environment challenges as distinct and separate. They are not. Green philanthropy demonstrates that environmental problems are as much a threat to people as they are to the planet.
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