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Rockefeller Foundation’s $1 billion catalytic climate commitment, Ep #78

Addressing climate financing gaps will require trillions of dollars in investment from governments, corporations, and big finance. Private philanthropic foundations, like the Rockefeller Foundation, play a crucial role by supporting communities left behind and acting as a catalyst for investment through de-risking and concessionary returns. Elizabeth Yee, overseeing Rockefeller Foundation's global programs, discusses the foundation's history in climate philanthropy, its billion-dollar commitments, and its pursuit of a net-zero emissions target for its $6 billion endowment, making it the largest private US foundation to do so.

Date: 01/16/2024
Guest:

Elizabeth Yee

About episode

It feels fitting to start 2024 talking about the big numbers, the big climate financing gaps we face and ways to fill them. 

We know that addressing the climate crisis requires trillions of dollars of investment. It’ll need to come from government, corporations, and big finance, but there’s another stakeholder with an important contribution. Private philanthropic foundations have important roles to play too, particularly in helping communities that might otherwise be left behind and in using philanthropic capital as a catalyst. By de-risking investments and taking concessionary returns, philanthropy can unlock hundreds of billions of dollars of needed investment. 

Today, we’re joined by Elizabeth Yee, who oversees Rockefeller Foundation’s global programs, including its recent $1 billion commitment to climate change. I’ve gotten to work with the Rockefeller Foundation in a variety of partnerships over the years, and I’ve been impressed by how they recognize their ability to take a lead and help accelerate fields. Of course, it’s interesting to remember the Foundation was initially funded by Standard Oil founder John D. Rockefeller, something that Liz and I discuss in our conversation. In recent years, the Foundation has demonstrated real commitment to climate leadership. And even in the weeks following this interview, the Foundation announced that it will pursue a net-zero emissions target for its $6 billion endowment, making it the largest private US foundation to pursue a net-zero endowment to date. 

Liz and I talk about the Foundation’s history in climate philanthropy, two different programs with billion-dollar plus commitments, how it works to catalyze other funding, the intersections of energy, food, health and economic opportunity and much, much more. Lots to learn and think about in this one. Here we go.

In today’s episode, we cover:

  • [3:43] Elizabeth’s background, history working on climate and current role
  • [7:15] Key elements of the Rockefeller Foundation’s Climate Commitment
  • [9:23] The Foundation’s divestment from fossil fuels in its endowment and details about the Global Energy Alliance for People and Planet
  • [12:23] Reasons behind the significant commitment to climate and the timing of such a commitment
  • [13:58] Overview of the billion-dollar commitment, including the main pillars and distribution across different climate priorities
  • [16:35] The theory of change behind the Foundation’s climate initiatives
  • [19:36] The types of partners needed for the success of the initiatives
  • [21:17] Influencing ideas and narratives
  • [22:43] Selection process and priorities for initial grantees.
  • [25:07] Grantees: Climate Mayors, C40, and the Urban Sustainability Directors Network
  • [27:12] Insights into the Invest in Our Future Initiative and its significance
  • [28:22] Grantees: Makerere University School of Public Health and University of the West Indies
  • [30:32] Success for the Foundation in committing significant resources to climate
  • [32:00] The message for other investors or foundations considering a similar commitment
  • [33:27] Elizabeth’s outlook and hopefulness despite the existing financing gaps

Elizabeth’s background, history working on climate and current role

Elizabeth previously led resilience finance efforts and project implementation at 100 Resilient Cities, where she and Jason initially crossed paths. Since then, she transitioned to the Rockefeller Foundation (proper), which established 100 Resilient Cities as part of its centennial celebration. In her current capacity as the Executive Vice President of Programs at the Foundation, Elizabeth oversees global programs focusing on food, clean energy, climate, health, and finance systems. Her involvement in climate began during her time at Lehman Brothers, where she worked on a utility-scale renewable energy project. This experience sparked her interest in the intersection of finance and environmental impact, leading her to contribute over 20 years of banking expertise to nonprofit efforts, such as addressing resilience challenges in cities worldwide.

Reasons behind the significant commitment to climate and the timing of such a commitment

Elizabeth explains that her involvement with 100 Resilient Cities was a pivotal factor. It motivated her to address how vulnerable populations can adapt and thrive amidst increasing climate shocks. Emphasizing the Foundation’s longstanding focus on humanity’s well-being since 1913, she views the current moment as crucial to ensuring communities can prosper in the face of ongoing climate changes and extreme events. Elizabeth sees the commitment as an opportunity to leverage the latest innovations for equitable and inclusive impact, reaching those traditionally excluded. Referencing her former boss’s perspective of not letting a crisis go to waste, she envisions the climate crisis as a catalyst for a green revolution that is fair and inclusive, placing marginalized people, jobs, and communities at the forefront of development efforts.

Overview of the billion-dollar commitment, including the main pillars and distribution across different climate priorities

The commitment focuses on leveraging the institution’s longstanding strength, with the first pillar emphasizing clean energy. Addressing the challenge that a majority of global emissions in 2050 might come from currently energy-poor countries, the goal is to empower the 3.6 billion people, including 800 million living without electricity, by providing access to clean energy for participation in the modern economy.

The second pillar centers around food and food systems, recognizing the dichotomy of a system that fails to nourish over 3 billion people while contributing a third of global greenhouse gas emissions. The objective is to ensure a food system that benefits people, provides access to nutritious food, and strengthens the planet.

The third pillar focuses on health, acknowledging that the health sector’s greenhouse gas emissions are limited but highlighting the three-plus billion people facing significant health impacts from climate change. The aim is to enhance health systems to prevent, predict, detect, and respond to challenges like infectious diseases, heat, and flood risks.

The final aspect involves reshaping and rethinking finance delivery, acknowledging the scarcity of philanthropic funds in this space. To meet the need for approximately $3 trillion of annual finance for communities affected by climate change, the Foundation aims to build a financial system that unlocks necessary funds and channels them to those who need it the most.

The theory of change behind the Foundation’s climate initiatives

Elizabeth emphasizes a collaborative and adaptive approach. The Foundation invests significant effort in learning and listening to colleagues, grantees, and partners to discern how its resources can be most catalytic. Unlike narrowing the focus to solely mitigation or adaptation, the emphasis is on identifying people-centered solutions through collaboration with grantees and partners. The goal is to support initiatives that strengthen individuals’ access to opportunities based on promising science and evidence. Examples include exploring new battery storage systems, utilizing wastewater surveillance for early outbreak detection, and promoting regenerative farming for improved nutrition, farmer equity, income, and landscapes.

When viable solutions emerge with support from partners, including the private sector, governments, and communities, the Foundation commits to making significant investments, scaling resources, and fostering alliances to replicate successful innovations. The overarching aim is to ensure progress is tracked, communicated transparently, and lessons learned from both successes and challenges are shared. Elizabeth underscores the urgency of time in addressing the climate crisis while emphasizing the commitment to keeping people at the forefront of all endeavors.

The types of partners needed for the success of the initiatives

Elizabeth expresses the desire for a collective effort, emphasizing the importance of bringing together diverse stakeholders. The Foundation adopts a solution-focused approach to attract various forms of capital necessary for addressing crises. Elizabeth envisions the Foundation’s role in philanthropy as taking the initial step and assuming the risk for novel ideas, proving their viability. Subsequently, she anticipates engaging partners with lower risk tolerance but an eagerness for innovation, encouraging governments to enact policy changes and allocate resources for economic opportunity and equity. The goal is to inspire the private sector, including traditional industries and financial institutions, to adopt these ideas, recognizing the Foundation’s efforts in de-risking as a catalyst for increased financial contributions.

Resources Mentioned

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