Global Citizen Launches Funds to Achieve SDGs in Poorer Nations
The international nonprofit organization, Global Citizen, which works to defeat poverty and defend people and the planet from climate change, recently announced a plan to launch six new sustainable investment funds of up to $1 billion each as part of an effort to help poorer countries meet the UN’s 2030 Sustainable Development Goals (SDGs). The funds will go to NGOs working towards various SDGs relating to healthcare, access to clean water, food security, literacy, and carbon emissions.
As Global Citizen’s Chief Policy Officer Mick Sheldrick told Reuters, "the world’s poorest countries need close to $400 billion annually to meet those goals, but currently get only a fraction of that.” With the assistance of partner organization NPX, the Global Citizen Impact Funds would organize donors and philanthropists to financially bridge this gap by supporting NGOs in poorer countries.
The Global Goals: 'We The People' for The Global Goals, September 24, 2021.
Why This Matters
Nonprofits like Global Citizen are certainly impactful, but to meet the climate pledges made at COP26, a larger role must also be played by for-profit companies in richer countries. While it’s true that many have made commitments, they have taken little action to back them up.
When it comes to assessing the efficacy of SDG-targeted initiatives undertaken by Global Citizen’s selected NGOs, accurate data is essential. A new initiative led by Microsoft and the ClimateWorks Foundation called the Carbon Call is working to create more accurate emissions data, offering promise within the private sector. And several tech and consulting companies are investing in carbon capture technologies. The Global Citizen Impact Funds could be yet another emerging target for investment.
A New Model
In order to assemble and distribute funding to NGOs as quickly as possible, Global Citizen and NPX have developed a new, scalable financing model in which investors contribute directly to NGOs. Once targets have been reached, Global Citizen repays investors. The system would provide a financial win for all parties with investors receiving a 5-6% return on investment, and NGOs receiving incentivization payments.
Additionally, people within recipient nations would benefit from on-the-ground initiatives, while donors would be assured that their money is going towards successful projects. Essentially, donors are truly buying positive outcomes. According to Sheldrick, this new investment model "has the potential to be a groundbreaking outcomes-fund vehicle that could transform philanthropy.”