From reactive to proactive: Preventing the next climate-driven disaster

Over the past 46 years, the U.S. has experienced 438 billion-dollar climate and weather-related disasters, with the estimated damages exceeding $3.2 trillion. The pace of these events has accelerated rapidly, with billion-dollar disasters now occurring every 19 days on average, as opposed to once every 82 days in the 1980’s.  

Simultaneously, community-led advances in technology and innovations make disasters more predictable than ever before. Yet, much of disaster philanthropy treats disasters as isolated events, championing more reactive, post-disaster assistance models.  

To explore why proactive, forward-looking giving strategies is essential in this era of continuous climate disruption, the Center for Disaster Philanthropy (CDP) hosted a webinar discussion, Before disasters strike: Rethinking philanthropy for a changing climate. 

Moderated by CDP’s Vice President of Fund Management and Coalition Building, Sharad Aggarwal, the discussion featured three experts:  

• Scott Onder, Chief Investment and Innovation Officer, Mercy Corps 
• Jessica Hitt, Senior Associate Director – Adaptation and Resilience, ClimateWorks Foundation 
• Greg Puley, Chief of the Climate and Innovation Section in OCHA’s Finance and Outreach Division 

While these panelists represented a variety of perspectives, some clear themes surrounding philanthropy’s role in anticipatory action emerged. 

Climate-driven disasters are becoming more frequent and more predictable, making early action both possible and necessary. 

I would just underline three things. One is that technology now enables [anticipatory action] much more than it had in the past. Secondly, the evidence supports it. When we’re able to take advantage of the anticipatory approaches that OCHA pursues…outcomes are better for people in the short and medium term. Thirdly, I would say that communities themselves demand it. – Greg Puley 

Communities at risk of climate impacts understand their situations best. They also have the most options available to them before disaster strikes. It is vital that philanthropy acknowledges and respects local contexts and therefore invests in supporting communities while they still have time to prepare accordingly. This investment pays off: i in one Mercy Corps pilot, delivering cash before drought conditions became critical reduced transfer costs by more than 75%, demonstrating the cost-effectiveness of proactive strategies. Anticipatory action also presents an opportunity to unify the sometimes-fragmented humanitarian sector behind a more streamlined, proactive approach to disaster support.  

Effective climate resilience centers locally-led action and requires adaptive funding approaches.  

“Prioritizing locally-led efforts and resilience building at the city level…capacitating and resourcing those on the ground and trying to put resources closer to where the impacts are actually happening, and where we know we need more input and decision making. Asking ourselves, what are we seeing? How can we get better and more effectively approach this together?” – Jessica Hitt 

Different local actors will have different priorities, needs, and knowledge. As such, it is important to fund a variety of actors on the ground that can support communities in diverse ways. Supporting locally-led actions is about much more than directing more money into communities, though this is also critical. A key part of being an “adaptive” funder involves asking local leaders about what is working well and what can be improved, so the funding models can be adjusted appropriately. For example, ClimateWorks paired their existing grantmaking with new system models that automatically release funds after recognizing that lengthy loss assessment processes were delaying funding for disaster-impacted communities. 

Philanthropy plays a vital and unique role in testing, funding and scaling climate solutions. 

“Invest in learning, evidence and innovation. The continued testing and evaluation helps us understand what works, where it works, and what needs to improve. Even relatively small investments in evidence can strengthen those decisions across the sector, so it can help organizations like ours and our partners attract more funding and help scale the strongest solutions over time.” – Scott Onder 

There are a great variety of innovative climate solutions that require investment. Mercy Corps notes that practical technologies like AI, early warning satellite systems and climate analytics have proven crucial to mitigating climate impacts in countries like Myanmar that otherwise have limited internet access. Automated cash transfers, simplified grant application processes, and parametric insurance decrease long wait times for assistance and show measurable success. Diversification of funding mechanisms is also essential as climate innovations require multiple forms of support and capital at different stages. Philanthropy plays a unique role by investing in a range of funding modalities, including grants, impact investments, pilot funding and pairing capital with partnerships and technical support to bring solutions to scale. As always, keeping this funding flexible and long-term helps communities to recover more completely, especially if they are experiencing recurring and overlapping disruptions. 

Ultimately, this conversation concluded that, whether through supporting local communities, investing in technological innovations or adapting existing funding mechanisms,  there is one fundamental takeaway: “Philanthropy should support action while risks are becoming predictable and people still have choices.” – Scott Onder.  

We are grateful to Giving Compass, Alliance Magazine, Network of Engaged International Donors, Philanthropy New York and Philanthropy Southeast for providing promotional support for the webinar. 

View the slide deck and webinar recording below to learn more: