The CEO of 1% for the Planet says companies can make a bigger contribution when their philanthropy is a core part of their strategy and aligns with their brand.
Most people know 1% for the Planet for its network of member companies that commit to donating 1% of their revenues to environmental issues. But Kate Williams, CEO of the nonprofit, says there’s an even greater opportunity when companies embrace a strategic approach to giving. In this conversation with Climate & Capital co-founder David Garrison, Williams explores ways that capital giving can pack the greatest punch.
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Key Excerpts
You watch leaders taking bold stances on climate. Where does that become an operational or strategic act as much as a moral one?
The answer to that has changed over time. Early on at 1%, leaders would start from the heart, saying, “This is the right thing to do.” Now, many start with: “Why am I doing this?”
Increasingly, smart people say philanthropy should be at the core of your strategy and operating plans. What we’re suggesting is that, like rent, taxes and suppliers, we should pay the planet as an operating cost — not as an end-of-year extra. Once leaders make that connection, it moves philanthropy to center stage.
Like rent, taxes and suppliers, we should pay the planet as an operating cost — not as an end-of-year extra.
Talk a bit more about the discussions strategic philanthropy prompts.
Increasingly, for a company to show up in the world, it has to demonstrate some level of commitment to driving change. 1% % for the Planet certifies that commitment to make it credible — it’s a process that demonstrates you’re expanding your impact in powerful and meaningful ways.
You’ve said that you’re trying to shift how we think about access to capital. What would you like to see change?
I’d like us to develop a better collective understanding of the interplay between philanthropy and different types of investment capital.
It’s important to understand, for example, what capital is needed and when.
We need to think this way for climate and other things that are good for the planet. If we’re too narrow — if we’re only thinking about where we’re going to get a financial return — we’re going to neglect investing in some of the solutions that we need to change our economy and our thinking.
The kinds of infrastructure, mindsets and relationships that have worked for us in the past will not necessarily be the same ones we need for a thriving climate economy. That suggests there are gaps. What gaps do you see?
One gap is that we need more collaboration across issue areas. Right now, activities are often viewed separately when we’re actually working towards the same goal. I’d like to see us connect the dots in ways that don’t create a greater burden on the people and organizations doing the work.
What stands out to you — beyond simply that they commit to 1% — that the leaders having the greatest impact are doing to push their organizations?
They’re pushing their companies to see the 1% commitment as part of a journey that has integrity.
No company is perfect. And sometimes, companies face integrity challenges, where they want to give to a nonprofit that’s fighting hard on an issue while they’re doing the work to sort things out.
The most effective leaders articulate that message: We’re about progress, not perfection. They lean into transparency over perfection.
The most effective leaders articulate that message: We’re about progress, not perfection. They lean into transparency over perfection.
As companies go through this, where do you see them struggle?
[Companies] struggle when someone makes the commitment but then doesn’t really lean into figuring out a giving strategy, building connections across the company, getting engagement around it and building a brand story. It’s like signing up for piano lessons but then not practicing. When you go to your lesson, it doesn’t feel that great.
Is there something you’d like to say to other leaders that doesn’t normally get said?
Talking about climate is heavy stuff. It can feel scary, sometimes disheartening, often overwhelming.
I’ve been thinking a lot about how we want there to be a beautiful, thriving planet and also thriving, joyful, creative communities.
Those two things mean that thinking about the urgency here in positive ways is important. It doesn’t mean we don’t take things seriously, but I believe we run faster if we’re even a little bit joyful; we make better connections if we bring hope and optimism to work.
