Original article here
Author: Alexander Puutio
Earth Day is upon us.
Since its inception in the 1970s, April 22nd has provided an apt opportunity for companies and their leaders to reflect on their impact on our shared planet and to take action to safeguard its future.
If you are still looking for a way of getting involved, you’re bound to find an initiative that fits your sustainability strategy.
For example, the EARTHDAY.ORG is rallying its forces around the theme of Planet vs. Plastics, seeking a 60% reduction in plastic production by 2024. The World Wildlife Fund offers guidance for companies looking to get started by giving them tangible starting points from 60 Actions for the Planet to dedicating an hour to serving earth. Elsewhere, a number of organizations are focusing on sustainable mobility with Earth Day Canada calling for a leg day and NYC is holding its biggest Open Streets ever.
If these initiatives aren’t enough, you can find hundreds of local events, ranging from cleanup projects to Earth Day Festivals registered on EARTHDAY.ORG’s event tracker. Clearly the global sustainability movement is finding its groove.
The same can also be said about corporate giving and sustainability efforts that go well beyond Earth Day. In fact, initiatives like the Pledge 1% are guiding millions of dollars into catalyzing climate action directly from corporate coffers.
For those who are seeking a way to commit to our planet for more than the going 24 hours, read below for an intro to how Salesforce and Atlassian have driven positive change by pledging 1% of their equity, time, product or profit.
How The Pledge 1% Works
Pledge 1% was established in 2014 by Salesforce, Atlassian and Rally. The initiative was built around Salesforce’s 1-1-1 model which began already in 1999, driven largely by a growing demand for peer guidance on how to navigate corporate philanthropy.
What began as a small initiative has grown into a movement with more than 18,000 members across the globe. Pledging is easy, and it comes with an active support framework with its own pledger community and a wealth of resources that will help you get started.
What sets the Pledge 1% apart is its inherent flexibility. Companies of any size and industry can join, and they can steer their philanthropic efforts towards goals that matter most to them. Today, a growing number of these goals are tied to environmental sustainability.
One company that is intentionally steering more funding into catalytic grants on behalf of the planet is Salesforce.
How Salesforce Deploys Their 1% On Behalf of The Planet
As a founding member of the Pledge 1%, Salesforce is walking the talk.
To date, Salesforce employees have dedicated 8.7 million volunteer hours, and the organization has doled out more than $700 million in grants, which includes a $100 million commitment by decade's end dedicated to climate action.
In our recent chat with Naomi Morenzoni, SVP Climate and Innovation Philanthropy, she noted that these figures wouldn’t be possible if the pledge was anything else than a sincere commitment to positive impact.
“Our leadership understands that business is the greatest platform for change and that we have a unique opportunity to do good by doing good business,” Naomi explained as we discussed how Marc Benioff and the senior leadership team has built the 1% model deep into the firm's DNA.
Even though the share of corporate giving trails behind individual charity, corporate philanthropic capital can be transformative when deployed tactically. “When considering where to engage and how, we look closely at where our funds could bring about an outsized impact. We look for opportunities to catalyze, even if it means having to be more patient, which is something philanthropic funding excels at,” Naomi added.
If your company is just getting started with its philanthropic programming, here’s our discussion concluded on three guiding principles that are good to keep in mind; listen deeply and intently to the grant recipient and their communities, go for smart philanthropy that works together instead of in silos, and embrace unrestricted funding even when it comes with less control over the outcomes.
“Corporate philanthropy has to be more risk tolerant if we are going to reach our global climate goals. Corporate philanthropists should be more like angel investors and comfortable that not every investment will be a breakout success.,” Naomi reflected on the narrative and hit rate that companies embarking on corporate giving missions should adopt.
What Matters From The Recipient’s Perspective
One grant recipient that is showing early signs of being a break-out success is RE-volv, a energy justice nonprofit that provides solar financing to community-based nonprofits across the country. RE-volv received an $850,000 grant from Salesforce to support underserved communities in accelerating access to solar energy.
In our chat with RE-volv’s Executive Director, Andreas Karelas, we discussed the recipient’s viewpoint at length.
“Our model is made possible by external funding, and we see first hand the impact corporate philanthropy has as it enables us to help our client nonprofits go solar and raise awareness about clean energy in their communities,” Andreas explained.
RE-volv has received funding from Wells Fargo, Salesforce, the Kresge Foundation and The Schmidt Family Foundation, among others, who have given unrestricted grants or operational capacity building grants that allow RE-volv to direct the funds to where they are needed the most.
“We’re thankful for the trust and support our funders have shown us, and quite frankly the impact we seek to deliver wouldn’t be possible at the scale and pace we want to see if we hadn’t been given funding for general support,” Andreas explained.
While every grant recipient is different, there are key considerations that you should keep in mind as you build and expand your corporate philanthropy programs.
First and foremost, make sure to take the time to understand the needs and objectives of the organizations. Lean on a partnership approach, rather than a purely transactional relationship, in order to foster deeper alignment and to build trust which is perhaps the most important ingredient in the mix.
Secondly, recall the importance of flexibility. Grant recipients like RE-volv are able to respond dynamically to the landscape they see unfolding in front of them thanks to the lack of restrictions, making it possible for them to maximize the effectiveness of every dollar donated.
Lastly, remember that patience and a long-term view are essential. In the end, true change, especially in areas as complex and vast as climate action, takes time and persistence.
