On 22 May 2023, Philea published the sixth edition of its Environmental Funding by European Foundations report, the most comprehensive of its kind, which covers topics ranging from thematic focus of environmental grantmaking, to geographical distribution, to approaches taken by environmental funders.

The report, which features detailed analysis of the environmental grants of 126 European public-benefit foundations, found that between these foundations, 8,518 environmental grants were made in 2021 with a combined value of €1.6 billion, more than double the value of the grants analysed in the previous edition of the report. While not an insignificant amount, the €1.6 billion of environmental grants still represents only a small portion (5 per cent) of total European foundation giving.

According to recent research undertaken by the ClimateWorks Foundation in California, it is estimated that philanthropic giving to climate mitigation by individuals and foundations remains below two per cent of global philanthropy, despite rapid growth in the foundation component in recent years. The amount of funding provided by philanthropic foundations also pales into insignificance when compared to the sums needed to tackle biodiversity loss and to decarbonise our economies.

Climate and atmosphere were found to be the area which received the most funding from the 126 foundations, accounting for 24.4 per cent of grants by value, with other, more unpopular, behavioural changes such as dietary transitions, curbs on flying and over-consumption still severely lacking in funding. Meanwhile funding for ‘new economy’ initiatives including those questioning economic growth is estimated to be just €11.4 million, or 0.7 per cent of the total value of the grants in the dataset.

The report identified by issue, by geography, by values and by approach to be the four main lenses which grantmakers and foundations use when developing a focus for their environmental funding, and when it comes to geography, a total of 148 countries were identified as having received at least one grant, a slight increase on the 146 in 2018. A total of 6,734 grants, worth €592.1 million, were directed towards projects in Europe (36.8 per cent of the total by value). The 2021 grants to Europe compare to 3,842 grants worth €388.3 million (52.1 per cent of the total by value) in the previous edition of this report. This is the lowest share of grants going to work in Europe across the six editions of this research, and the first time the percentage has fallen below 40 per cent.

Following its findings, the report notes that ‘while it is important to celebrate the expansion, dynamism, and increasing sophistication of the sector, we wonder whether foundations are really making enough use of their capacity to take risk and to fund work that couldn’t be supported in any other way,’ and concludes with issues for foundations to consider as the world reckons with the current environmental and climate crisis.

The report is an initiative of Philea’s European Environmental Funders Group, which acts as a hub for connections for funders and funders’ associations active or interested in the fields of environment and sustainable development.

Philea nurtures a diverse and inclusive ecosystem of foundations, philanthropic organisations and networks in over 30 countries that work for the common good, uniting over 10,000 public-benefit foundations that seek to improve life for people and communities in Europe and around the world.

Simon Hungin is a freelance writer that supports Alliance magazine.