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The Issue

Climate

Climate change affects our health, financial security, quality of life, and economy, increasingly undermining a household’s ability to build and preserve wealth. Philanthropy plays a vital role in partnering with communities, the private sector, and state and local agencies to support households and communities most affected by climate change—both now and for the future—while ensuring the transition to clean energy is inclusive and affordable.

The well-being and wealth of households, communities, and the broader economy are deeply tied to the physical environment. Communities face urgent challenges in managing immediate climate disasters, striving for economic stability, and planning for the future amid ongoing climate pressures. Climate-related financial strains deplete savings, increase debt, strip assets, and disrupt wealth-building opportunities such as homeownership, business growth, and intergenerational wealth transfer. Together, these impacts destabilize and drain local and regional economies.

While clean energy solutions can boost resilience, reduce energy costs, and improve environmental outcomes, they remain inaccessible or unaffordable for households and communities with low wealth. Grantmakers can mitigate these challenges and amplify opportunities by driving market changes, reducing financial burdens, and empowering communities to adapt and thrive.

AFN identifies and shares opportunities for philanthropy to advance economic security and climate resilience. Together, we can tackle urgent climate and economic challenges while reimagining systems for a just, sustainable, and clean economy that benefits all.

Read our statement on the fires in Los Angeles.

Philanthropy can unlock a wide range of opportunities that advance economic security and climate resilience for households and communities.

Explore actionable strategies in Climate Across AFN’s Issue Areas: Potential Opportunities. This document outlines a wide range of intersectional opportunities for philanthropic grants, investments, and actions across AFN’s seven issue areas to advance economic security and climate resilience for households and communities, nationally and locally.

Why It’s Important

Philanthropic investments to reduce the effects of climate change and prepare for its impacts can drive economic security and equity.

More inclusive economic and climate-related opportunities for communities of color and those with low incomes and wealth

Reduced financial strain on households affected by climate hazards and energy burdens

Improved wealth retention and growth from climate effects through protected assets and savings

Greater access to climate-resilient housing and household goods

Improved public health outcomes from reduced environmental risks

Stronger local and regional economies driven by sustainable practices

Increased and equitable community preparedness for and facilitated recovery from climate-related disasters

Broader systemic reforms that address the root causes of climate and economic vulnerability

Grantmaking Strategies

A wide range of intersectional opportunities exist for philanthropic grants, investments, and actions across AFN’s issue areas to advance economic security and climate resilience for households and communities. Grantmakers can maximize these opportunities by partnering with the private sector to bridge gaps and scale solutions, and collaborate with local and state agencies to advocate for policy change, secure funding, and drive systemic transformation.

This moment offers an unprecedented chance to leverage already deployed federal funding for a just transition—addressing the threats of climate change while transforming the resilience of households and communities. The urgency to act is matched by the opportunity to build a more sustainable and equitable economy. Yet the committed federal funding alone is insufficient. Grantmakers can help maximize the moment by building on their current investments and focusing locally: listening to and building trust and power in communities, supporting trusted organizations, strengthening local ecosystems, and ensuring equitable access to the resources and assets people need to thrive.

To increase economic security while preserving health and wealth, grantmakers can combine investments in policies, products, capital, and community-driven solutions across two key overlapping climate strategies – climate mitigation (helping people and communities transition from fossil fuels to clean energy) and climate resilience (helping people prepare for and recover from climate effects).