Laudes Foundation Annual Report 2024

Laudes Foundation

Annual Report 2024

Laudes Foundation Annual Report 2024Contents

Stories of impact

2024 in numbers

Our progress

Annual Report 2024

Laudes Foundation

A letter from the CEO

In our first five years as Laudes Foundation, we have seen extraordinary changes in the world around us, from a global pandemic and the rise of AI to a deepening climate (and nature) crisis and growing inequality. Such systemic shifts — and the challenges and opportunities they bring — have strengthened our conviction that the transition to a green and inclusive economy can only happen when people — workers, producers, communities — are at its centre.

Over this past year, I am proud of the small but promising steps our partners are making toward this ambition. Specifically:

Our 300+ partners are having traction. With our rubrics-based measurement system, we have been able to identify 2000+ stories of how our partners are enabling key actors — business leaders, investors, public servants, workers and communities — to make positive change. In this report, we share some examples of these changes.

I’m particularly inspired by how our partners are finding opportunities to engage on policy and shape incentives in our larger economic system.

Our work is focusing on those leverage points that can accelerate just transitions. In Fashion, we are expanding our work to the industry’s carbon-intensive processing activities, including end of life. In Built Environment, we are expanding our work to social housing, where we are addressing the tension between green building and cost of living. In Finance, we are increasingly enabling new mechanisms to make just transitions investable. And in Food, our newest industry, we are exploring how to shift urban demand to healthier, sustainable options.

Our big bets in our industry transformation initiatives Fashion for Good and Built by Nature are paying off. In its seventh year, Fashion for Good’s support to over 184 innovators is showing how demonstrating tangible “proof of concept” in retailers’ supply chains is the first step to scaling widely.

Likewise, Built by Nature, who has brought together over 106 frontrunner companies, has been recognised by the World Economic Forum for its innovative approach to mainstreaming bio-based construction.

We unlocked over EUR 279 million in additional funding for our partners, and EUR 188 million to scale their work. We continue to invest in strengthening donor collaboratives, such as the Just Transition Donor Alliance and Assemble (for the Built Environment). We co-created these to unlock more philanthropic funding to decarbonise industry at scale and pace, while putting people first. And we remain active collaborators in an additional 13 donor collaboratives, including ClimateWorks Foundation’s Funders Table.

We have deepened support to partners to help build resilience in these uncertain times. We continue to do this through addressing specific needs (e.g. fundraising) as well as offering direct funding for priorities such as inclusion, wellness, resilience, and learning.

In doing so, we hope to contribute to a stronger and more resilient partner ecosystem, which is critically needed for the systems-level change we want.

At the same time, I recognise that the context in which we, and our partners, operate is getting harder. Civil society space is shrinking. Business and industry are feeling pressure. Policy is backsliding. And disinformation abounds.

Looking forward, now is the time for philanthropy to step up and play its important, catalytic role. And as I said in last year’s report, I remain cautiously optimistic about our mission — this time for three reasons.

“Just” is increasingly on the agenda. Effective climate and nature action must be socially equitable and economically viable. Long championed by civil society, the concept of just transitions is gaining traction among business leaders and investors. But it’s not easy, and, over the coming years, I expect us to continue to test and innovate ways to do this across all

of our focus industries — as they both transition out of a fossil fuel-dependent economy and transition into one that is green and inclusive.

Industries are global, but transitions are local. Effective just transitions, in an industry like fashion whose supply chains stretch across continents, require local ownership and deep collaboration across diverse entities. Philanthropy can meaningfully connect these stakeholders, removing barriers that keep finance from flowing into transitions. Good timing also helps, as we see in Bangladesh where, with an interim government and renewed optimism, we have an opportunity to show what a just transition in Fashion can look like.

Money is (starting to) flow. While still small (at less than 2% of all philanthropic funding), catalytic support for climate action is increasing with the rise of new foundations and the quiet support of organisations like Climate Lead and Active Philanthropy. And the expected transfer of EUR 16 trillion to next

generations will help. We are also seeing more donors increasingly focus on the “real economy,” underlining the importance of business and the market to effect change. With an uncertain future before us, I continue to be inspired by our courageous partners, who have helped us learn and sharpen where Laudes can be most impactful, as well as our mission-driven team.

The late Ruth Bader Ginsburg once said, "Fight for the things that you care about. But do it in a way that will lead others to join you." Now is the time for creativity, innovation and boldness — in partnership and collaboration with those who have the power to transform the industries that drive our economy. I am honoured to be able to do our small bit toward the future we want.

Leslie Johnston
Chief Executive Officer
Laudes Foundation