“If flexible finance is what it takes to scale innovation, then where is the “F” in the broader ESG movement? Why aren’t we demanding more of it?”

I had the unique opportunity to participate in the Clinton Global Initiative (CGI) summit in NYC last week. Over 2,000 individuals gathered to discuss and contemplate various commitments to global action, including how to move the needle on various socio-economic disparities arising from climatic devolution.

Commitments to Action (CTAs) are pledges of impact by various non-profits, and private and philanthropic agencies – all focused on helping to solve pressing global, environmental, and social issues. These CTAs complement a greater embodiment of ESG behavior that, one can only hope, will continue to be at the forefront of mainstream organizational and corporate culture.

The Summit provided an opportunity for organizations and companies to exchange actionable solutions for climate disparities. Ideas, and corresponding actions, stemmed from accelerating carbon sequestration efforts to scaling clean water access to growing more abundant and healthy food in seemingly inhospitable areas.

Yes, political summits can be a lot of talking heads, but in a time when words tend to get “washed,” it was refreshing to witness more organizations and companies taking deliberate action to help solve complex environmental issues. Large or small, taking action matters. So, what will it take to achieve impact and scale in this work? The Summit proved a cornucopia of ideas, but one theme that echoed across sectors was the need for philanthropy to reimagine how they invest.

Environmental organizations, like water.org, founded by actor Matt Damon, noted they need flexibility to test ideas and take risks – all of which can help scale impact. However, the traditional form of philanthropic investment tends to overly favor highly measurable and (often) administratively burdensome outcomes, meaning non-profits spend more time on reporting versus innovating and deploying programs.

This traditional investment approach may inadvertently stifle innovation, as it does not encourage new ideas and may limit the ability to achieve scale. As such, environmental pioneers are advocating for a new investment mindset, including “trust-based” philanthropy. This type of investment approach is not a new concept, thanks to investors like McKenzie Scott. But why is this mindset not more mainstream across giving sectors? If flexible finance is what it takes to scale innovation, then where is the “F” in the broader ESG movement and why aren’t we demanding more of it?

Finally, what the CGI summit drove home was the notion that no one sector can solve our complex social and environmental issues alone. We will need pronounced public-private partnerships acting at the local, national, and global levels. As participants noted, “one sector cannot simply do it alone.” This work requires pronounced multi-sectoral relationships, all of which move at the speed of trust. If we want to accelerate the speed by which we achieve impact and scale to environmental challenges, then we need to strengthen relationships between sectors. Simply put, to scale and sustain more calls to action we need clearer paths to forging more public-private partnerships. It will be interesting to see if the next global initiative summit does just that…

For more info, visit: the Clinton Global Initiative

A big thank you to Caitlin Cain, President of Cain & Co and Vice President, of Local Initiatives Support Corporation for sharing this piece and the accompanying photos. She attended the University of Toronto, Trinity College, and is a classmate of YY Founder, Lisa Annabel Ellis.

Chelsea Clinton, sitting next to Eliza Reid, co-founder of Iceland Writers Retreat, author of Secrets of the Sprakkar: Iceland’s Extraordinary Women and How They are Changing the World. She’s also the First Lady of Iceland! Eliza attended the University of Toronto, Trinity College, and is a classmate of YY Founder, Lisa Annabel Ellis.