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Aubain – dancer, yogi, community leader and refugee – takes a break in Nakivale refugee settlement, Uganda, April 2018; photographed by Nachson Mimran

As the number of high net worth individuals increases, the philanthropic sector funded by their wealth has expanded. But is philanthropy genuinely effective and useful? In this feature, LUX speaks to some of the leading players to establish how the future of the sector is – and should be – shaping up, and discovers the pitfalls to avoid

In 2018, Rob Reich, Professor of Political Science at Stanford University in the US, shook the world of philanthropy with his book, Just Giving. In it, he claimed that the world of philanthropy was failing democracy, particularly in the US.

Many philanthropists “were not giving away enough”, their foundations were opaque and they were not having the desired positive outcomes. Reich’s book stirred timely and impassioned debate in a global philanthropy sector that has grown in the past decades to be worth more than an estimated £182 billion (US$228 billion) by 2023, according to The National Philanthropic Trust.

But while some of his theses continue to have merit – in particular, questions about motivations for some philanthropic endeavour – it is also clear that much philanthropy has been evolving rapidly, becoming more efficient and focused on delivering transparent solutions to major issues that cannot or will not be solved either by purely public or purely private capital.

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Olena (26) with her children, Artem (8), Sofia (3), Oleksi (7) and Zlata (18months), who were taken away from Olena and put in an institution in Ukraine when Olena couldn’t afford to look after them. Social workers from Hope and Homes for CHildren (which is funded by charitable trusts and foundations including UBS Optimus Foundation) supported Olena to improve her financial situation and helped her get her children back home again

A fundamental starting point is to focus on achieving systemic rather than symptomatic change, says Tom Hall, UBS Global Head of Social Impact & Philanthropy. To do that most effectively, philanthropic and investment capital need to work together to create leverage around areas of fundamental global importance, such as climate, education and health.

“We have to be smart about how we allocate both philanthropic and investment capital, and we have to work in partnership with all of civil society to build the kind of economy that’s required to have sustainable pathways for people to prosper and for us to protect our planet,” he says.

These aims are encapsulated in the United Nations Sustainable Development Goals (SDGs) and, while some may take issue with the United Nations and the concept of SDGs in general, there is little room for doubt that addressing the focal points highlighted by these 17 goals is fundamental to global health and wealth in the future. At the heart of it all is sustainability, which means ensuring a healthy planet and an equitable future for all people on it.

Footballer Patrice Evra, seen through Extreme E tyre, Neom, Saudi Arabia, March 2023; photographed by Nachson Mimran

Every endeavour must be approached through this lens, including philanthropy. In addressing this point, philanthropy has to become bolder: this means doing the research, taking risks, measuring results and leveraging both its capital and its connections with private and public capital.

And, as we will see, it is starting to do so. Keys to this approach are blended finance and social-impact enterprises, which can both leverage and catalyse philanthropic capital in ways that traditional grant-making cannot.

For example, UBS Optimus Foundation and Bridges Outcomes Partnerships, a specialist non-profit, has developed the SDG Outcomes initiative. This works with governments, corporates and other outcomes funders to design, support and deliver SDG-aligned projects in low- and middle-income countries, particularly across Africa and Asia.

It uses an innovative blended-finance structure that sees UBS Optimus, funded by donations from over 30 UBS clients, providing 20 per cent first-loss capital to unlock further impact-driven capital. Any philanthropic funding returns are recycled into future projects.

SDG-linked themes are resoundingly supported by many of the new generations of philanthropists, such as Nachson Mimran, an entrepreneur, philanthropist and creative based in Switzerland. “I felt a shift in the conversations I was having with friends around dinner tables in about 2016.

People started asking questions about sustainability, climate change, poverty and global migration in the context of corporate social responsibility,” he says. “This happened to be around the time the UN launched its 17 Sustainable Development Goals.

A year earlier, my brother Arieh and I had already launched to.org – a platform operating in venture capital, philanthropy and the creative space, focused on accelerating solutions to Earth’s most pressing challenges – and we were excited that collective attention was turning in a similar direction.

“I believe,” he continues, “that Millennials and Gen Z are having these conversations and beginning to think about integrating philanthropy into business much earlier in life than previous generations.

My personal belief is that the most successful businesses of the future will be those that choose to respond directly to several – and not just one – of the 17 SDGs.”

Different perspective, similar approach: James Chen is Chair of the Hong Kong-based Chen Yet-Sen Family Foundation, and espouses a risk-taking approach for philanthropic capital, which can then leverage the reach of international organisations.

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Rohyinga children, Kutupalong refugee settlement, Bangladesh, December 2017; photographed by Nachson Mimran

“Philanthropy has a storied history of success, and private donors have played a critical part in funding important social advances, both big and small,” says Chen. “But some of today’s global challenges need a different approach, one that requires time, expertise and investing in risk-taking entrepreneurial ideas.

It is an approach that I and others call ‘moonshot philanthropy’. Drawing on President John F Kennedy’s ambition to put a man on the moon, it is about more than just donating money; it’s about making a philanthropic investment in an ambitious venture that has the potential to catalyse system change.”

Noting that 2.2 billion people around the world are affected by poor vision, which adversely affects their education, health, work opportunities and gender equality, as well as productivity, Chen launched his Clearly campaign in 2016, backed by his family’s philanthropic capital, because, he says, philanthropic capital can afford to take a risk to lose capital where organisations like the World Bank and USAID can not, due to their strict accountability rules.

As well as funding technology and campaigns in developing countries, which have led to millions having consistent access to eyeglasses from childhood, Chen was a key mover behind the United Nations resolution, passed in 2021 and adopted by all 193 member countries, to ensure affordable eyecare for all by 2030.

Professional leadership and creating connections between the philanthropic sector and the private and public sectors is critical, according to Maya Ziswiler, CEO of UBS Optimus Foundation. “More and more philanthropists are telling us that having a passion for doing good is not enough and that they want to see measurable outcomes based on their action,” she says. “How can you take advantage of your passion with rational thinking to ensure you’re actually having an impact, and working with others to maximise that impact?

The problem isn’t that there is a lack of money out there; it’s making sure that the money becomes accessible and that the capital is pooled to scale impact. “When we become involved in a programme,” she continues, “we always think, what are the routes to sustainability and scale?

There are two ways you can make sure a programme is sustainable and will continue after philanthropists decide to exit, and that is either that a government takes it over, or businesses take it over. Philanthropists need to make sure that they have the right understanding of how those systems work and then build those relationships.” UBS’s Hall agrees that the leveraging of relationships between the sectors, and in the way philanthropy works, is essential, if the funding gap for Sustainable Development Goals, currently in the trillions, is to be closed. Even with the dramatic growth in philanthropic capital, private giving alone will not be able to do it.

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Girl collaborating with to.org, creative activists in a street-art, project, Libreville, Gabon, November 2018; photographed by Nachson Mimran

There are few more seasoned hands in the worlds of philanthropy and proven and effective sustainability than Julie Packard. The multiaccolade ocean conservationist is Vice Chair of the David and Lucile Packard Foundation, and co-founder and Executive Director of the Monterey Bay Aquarium.

Her programmes, such as Seafood Watch and the Southeast Asia Fisheries and Aquaculture Initiative have been globally recognised game-changers for sustainability – across general education, consumption and the realignment of production to sustainable practices.

“Having served on the Packard Foundation board for 50 years now, I’ve seen a lot of change in philanthropy,” she says. “One is the natural trend to move from working on local-scale issues to global approaches, which focus on getting at the root causes of the problems we all aim to help solve. “Over time,” she adds, “our experience at the Packard Foundation has made it clear that we must be more equitable and inclusive in our relationships with the partners in whom we invest.

In the past, foundations – including ours – had a set of priorities, and we set out to find organisations whose own work matched those priorities. We’re working hard to get away from this top-down approach. Philanthropies are also, as we are doing, directing more funding to people and communities who have been historically excluded, so that they have seats at the table to design and implement solutions.

The philanthropic community has a lot to learn to shift our historical ways of working, so that all voices can be heard and we can best contribute to lasting positive change for all.

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Basket stars, seen at Monterey Bay Aquarium’s “Into the Deep” exhibition. Oceans produce the majority of the oxygen on the planet and life underwater is a massive carbon sink. Healthy oceans are essential for healthy and sustainable life on Earth

”Bringing private, public and philanthropic capital to work together through blended finance, social entrepreneurship and shared expertise, around conservation and sustainability, is a focus of the Prince Albert II of Monaco Foundation.

It organises numerous forums around the blue economy and finance; hosts the annual Monaco Ocean Week conference, which brings together investors, entrepreneurs, NGOs, the public sector and philanthropic capital; and launched the €100 million ReOcean Fund in 2023 to accelerate, build and mobilise capital around the ocean economy. “The challenge of progressing planetary health is only possible through collective effort,” says Olivier Wenden, CEO and Vice Chair of the Foundation’s board of directors.

“This is why the Foundation’s action is based on a holistic and collaborative approach of global environmental issues. We aim to unite scientists, political leaders, economic players and representatives of civil society to maximise our positive impact.” Wenden cites its Ocean Innovators Platform, launched two years ago, as “a good example of how collaboration can accelerate positive change.

Putting together innovators with philanthropists and investors in the same room is a very powerful way to scale-up solutions.” Leveraging is also about human capital and expertise done effectively and entrepreneurially.

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Pritzker Architecture Prize winner, Diébédo Francis Kéré, poses in front of The Throne, a portable toilet 3D printed using plastic medical waste, Switzerland, August 2021; photographed by Nachson Mimran

Read more: Alan Lau and Durjoy Rahman on the importance of art philanthropy

Ben Goldsmith, a British investor, conservationist and philanthropist, launched the Conservation Collective in 2020 from an existing conservation initiative. A hub and accelerator for conservation and sustainability action, it now encapsulates 20 independent philanthropic organisations around the world.

“Just as with venture capital, I have always thought that if every project is working, you’re probably not taking enough risk,” says Goldsmith. “All the challenges are the same as a startup; there are tremendous parallels between them. £1 of overhead at the umbrella charity creates around £12 for the underlying foundation. We’re not far away from having given away around £15 million and we’re also launching new foundations in Bermuda and Mauritius.

If you can create these local foundations, they become hubs of activity.” Agreeing with UBS’s Hall, Goldsmith says addressing root causes is fundamental. “There’s a tendency in environmental philanthropy to ‘provide service’. We don’t want to just fix things, we want to be funding groups who are striving to change the system.”

In terms of systemic change, Hall also speaks about the importance of addressing issues at their root, and overcoming built-in societal prejudices that can, for example, cause a black woman looking for startup capital for a social enterprise in Africa to be confronted with ruinous APR rates on a business loan. Mimran’s to.org funds significant social-impact investors in developing countries in Africa, with local expertise and global networks providing leverage and amplification that grant-making alone could never have provided.

Jessica Posner Odede knows all about creating lasting societal change in Africa. She is CEO of Girl Effect, a major international non-profit that works primarily in Africa and South Asia. Girl Effect uses media and technology to provide girls with tools that can change their lives, in terms of information, empowerment and education, in societies where women – half of the population – are deprived of opportunity, rights and the chance to play productive roles. Entrepreneurial thinking is essential for foundations, according to Odede.

“Look at consumer businesses,” she says. “You see millions of dollars and also time and energy spent on thinking about consumer journeys, marketing – how does somebody know their product or service? You would never launch a commercial venture without thinking through those user journeys, to see how to reach your customer. In philanthropy, there has been an assumption that people need certain things and will just use them.

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From the “Twilight’s Path” series by Jasper Goodall, whose images were shortlisted for the Photography Prize for Sustainability, created by UX in 2022. Investment in stewardship of land-based ecosystems contributes to biodiversity, which underpins sustainability

This has been a huge misconception and has resulted in a lot of ineffectiveness in terms of services utilised.” Odede says that in the African and South Asian countries that Girl Effect operates in, they ensure they know their end user. “We work very closely with health ministries, girls, parents and local health systems; we establish how you build diverse stakeholder collaboration in a way that is led by people designing the solutions who have also experienced the problems.”

So, was Stanford’s Rob Reich correct, back in 2018, to highlight how philanthropy was being challenged? He was, in some respects. But we can see how visionaries and effective players, old and new, are changing the game dramatically for the better.

As UBS’s Ziswiler says, “More and more we are seeing that billionaires see it as their responsibility to resolve global issues, and about 90 per cent of them are very serious about their philanthropy. But they are also realising that philanthropy alone can’t help us bridge the funding gap.

We have realised that philanthropy can be much more catalytic, it can take more risk, it can be more flexible.“The added benefit,” she says, “is that potentially money could be used more than once in a structure like that, because the potential for me to get my money back means I can redeploy it.

Not only is there more impact because more money is coming in and is being leveraged more effectively, there is also more impact because the money I was going to deploy once, I can now deploy again and again.” There are still caveats, though.

For example, there are no industry standard metrics to demonstrate effective and long-lasting causal change, which means measuring return on philanthropic investment utilises metrics and analyses that are often imperfect – even with the best intentions.

“The example of what good quality looks like here is in the health sector, where you need a clinical trial to bring your product and service to the market,’ says UBS’s Hall. “We don’t have that mandated in almost any other field.

It remains a challenge.” Like all of human endeavour, then, the world of philanthropy is flawed – but it is also irreplaceable and, through its recent evolutions, it is making an increasingly positive impact on the world by joining forces with other human creations. Humanity’s philanthropic journey will be long and potentially endless, but there is every reason, and an increasing amount of tools, to embark on it with the highest of rational expectations.

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Reading time: 14 min
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neera nundy

Neera Nundy is Co-Founder of Dasra India

Dasra, or ‘enlightened giving’ in Sanskrit, was co-founded in 1999 by Neera Nundy and her husband Deval Sanghavi as a venture philanthropy fund in India to invest in early stage non-profit organisations working in SDG areas of gender equality, urban resilience and sanitation. In twenty-five years, Dasra has unlocked over $350 million US for 1500+ non-profits and impacted over 180 million people through its trusted ecosystem, one recent start-up GivingPi being India’s first Family Philanthropy Network.

LUX: You are a recipient of multiple awards from inter alia the Canadian Governor General, Forbes India, Forbes Philanthropy, Vogue India, and you partner with Harvard, Stanford, USAID. How did you embark on this journey as a change-maker?

NEERA NUNDY: In hindsight, while it feels like there was a clear strategy in fact the pathway was more zigzag than linear! Twenty-five years’ ago, when we started, I was very young, an analyst at Morgan Stanley who had just graduated in statistics, followed by business school at Harvard then UBS.

With all this access to privilege, not of wealth but I mean privilege of education and exposure to diverse experiences, I was always asking myself if there was something I could do that would make a difference in the world? Whilst I was born and raised in Canada but I felt a deep connection to India. My mother had founded a school for tribal children in India, I went back myself when I was ten to boarding school, so I had a sense of identity and belonging and I wanted to make a difference there.

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Visit to partner Satya Special School in Muntrampattu, Puducherry advocating for the inclusion of children with special needs in education, employment, and society.

LUX: How did your background in finance influence your approach to unlocking capital for good?

NN: I really started out on this road with my husband. We met at Morgan Stanley as analysts in1999. If you think about financial services, there are so many different kinds of ways to move capital around and, to move philanthropic capital, you also need intermediaries. We are one of India’s few infrastructural bridge builders, helping organizations on the ground working with the most vulnerable, working with communities and growing their impact. We did not have funding at the start, so the real skill we had was helping organisations institutionalise. So from a management side, what the private sector takes for granted, we asked how could we enable organizations to strengthen themselves institutionally so that their impact could grow? Very quickly we realised that all of that costs money and you need flexible money so we decided to use some of our capabilities to raise money from families and corporates. At that time in India the CSR mandate had also emerged so our role evolved to connect philanthropy to organizations doing great work on the ground.

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LUX: How did Dasra evolve from a social impact bridge-builder to a leading non-profit collaborator impacting over 180 million lives?

NN: Over the first decade, it was honestly all about survival. We were a very small team trying to raise money and make ends meet. We started Giving Circles so that there would be some funding. We had families pool money and support non-profit organisations who are the pioneers now in their field like Educate Girls SNEHA, The Audacious Project, Magic Bus, ARMMAN and we had a good feeling that we had in some way contributed to this success. The next decade became about staying relevant, accelerating our impact rather than just raising money. So over the last 25 years, although we have influenced around $350 million USD and motivated our teams, we have always focused on impact. That is why we moved our work from 1-2-1 relationships to more platform-building, growing networks, holding ourselves more accountable on outcomes. That’s really when we launched our first alliance, Girl Alliance, a collaborative fund for adolescent girls, focusing on girls from 10 to 19 years old. Only fifteen years ago, you would meet someone in CSR asking if they wanted to fund adolescent girls and the men around the table would not get why this was important as for them it was over as the girls would soon be married. So it was for us to create a market. Some of what we have done in 25 years is to create markets for different issues, bringing them together, evolving platforms for a real array of organizations trying to support the unlocking of philanthropy but also supporting organizations on the ground. It may feel that Dasra does a bunch of different things but it is because the sector needs it.

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Industree partners’ project, GreenKraft, Tamil Nadu, a virtually 100% women’s collective engaged in creating and selling handicrafts made from recycled banana bark.

LUX: Who is the audience, the target group?

NN: I’ve really tried to emphasize the part of our vision where a billion thrive with dignity and equity, that at the core of all we do must be in service of the most vulnerable, supporting them and investing in creating thriving communities. To do that you need to bring together and invest in NGO leaders, invest into funding and philanthropy and build that trust between the three of us.

So are we in service of the funder or in service of the NGO leader? Neither but we need both of them to be part of being in service of the community. To do that, we make the issues more visible, help them engage, show them the impacts on the ground. Ultimately though you need funding! So you are still in the most immediate sense catering to the needs of different funders and the needs of NGO leaders and bridging them.

In terms of hierarchy, though, I would say first, the community, then the NGOs, and then the funders. We are in a privileged position that we can take a stand with funders and say there is a right and wrong and we can support you in doing a better job by working with you.

LUX: You also work with leaders from the smaller NGOs and minorities, engaging with communities and collaborating bottom-up: how did that come about?

NN: That’s also been a journey for us over the last 25 years. When we started we were much more proximate when we had Giving Circles and were working with NGO leaders. These were all very small organizations then. Educate Girls was only in 50 schools and when we started working with them they became or established and now they are in thousands of villages and impacting around two million girls.

About 10 years ago we started working with various established organizations and the ecosystem grew because everyone was funding the same organizations and spotlighting them. Then we shifted on the back of Covid, with all those challenges within communities experiencing the pandemic, the way proximate leaders risked their lives to support communities and to support India, we felt strongly there was now a new role for us. We decided to go back to the grassroots, to some of the more proximate organizations and to continue to support the next generation of organisations and that is the $50 million USD Rebuild India Fund.

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SEEDS partners training local communities in construction principles and practice to build robust safe homes, schools and infrastructure.

LUX: What do they want, the leaders of the next generation of organisations?

NN: They want to make what was invisible more visible, be engaged and be part of the nation building. India is only going to flourish if we move this group. We are a sort of nexus between what next gen and what they want to contribute to, showing them the effectiveness of listening to communities and working bottom-up to make change.

LUX: How important is an intersectional approach in bringing about successful outcomes?

NN: Around 15 years’ ago when we moved toward a platform-building model, we started our work around adolescent girls and there was real awakening in India with a new focus on outcomes. A girl needs an education, health, and employment and although funding is sectoral that does not mean you deliver ultimately for this girls’ empowerment via these separate lenses.

You need extensive health interventions to make other outcomes sustainable. Our ‘10 to 19’ anchored outcomes for a collaborative fund, so an education funder can come in, a health funder can come in because the kinds of outcomes we had were keeping girls past grade 10, delaying marriage, delaying first pregnancy, increasing their independence and employability. So multiple funders can come in because you are delivering on the outcomes.

We are supporting a particular State, or a number of different organizations and the measurement is providing a view on and links to these outcomes. So there is a role for us as an intermediary, or backbone collaborator, or systems orchestrator that can be enabling, to show where funding might take a certain shape for good, show the need in the community for these girls, and bridge the parties. That has been a lot of what we’ve been working towards and to make change you need that intersectionality.

LUX: Is that intersectional approach also appropriate with climate change and the disproportionate adverse impacts on women and children in the Global South?

NN: Climate is a tough one to get our country to engage with, especially if you move down this path to energy transition. We do not want to compromise economic growth. If you want to buy a washing-machine there are emancipatory benefits for a woman in saving her time from washing clothes. There is a role you need to play to shape the intersectionality. So climate and gender, climate and health, climate and livelihood, being able to link the impact of climate on these sectors. What we call intersectionality will actually unlock greater interest and potential for both funders and organizations to engage.

Read more: Hansjörg Wyss on his pioneering work in conservation

LUX: Is intersectionality offering new opportunities that change the model of family-giving in India?

NN: It has been evolving and I think it’s a newer category at least in India, where promoter-led giving ie business leaders are also family-owned businesses. Corporate giving is aligned with family-giving and this synergy is still evolving. Family philanthropy has deep history in India. Wealthy families have been part of our Independence movement, the cornerstone of our religious structures and organisations, and they have invested back into their communities through education, institutions, and hospitals.

Families, especially those with a family office structure, give to communities based on their personal values and their corporate governance. Rather than advising them to be more strategic, we recommend they continue to with their philanthropy, which some may say is traditional, but also explore with them what has been happening in their chosen field of philanthropy, so can they engage in these intersections for the most vulnerable? Again we are spotlighting needs. We now have 300 families in this Giving Pi giving network, 80 of them Indian families.

LUX: Who are the emerging philanthropy leaders among India’s next gen?

NN: Women really understand the intersectionalities and it is really exciting to see around 70-80% of the family offices are women-led. While they may not have created the wealth, they represent their families and are the decision-makers for where their families will direct and engage their philanthropy. That dynamic is shaping and forming a whole new way of giving. To be honest it is more collaborative.

There is a real appetite to want to build the community. These women want to engage with gender-focused philanthropy, with climate as an emerging issue, arts and cultural philanthropy which has always been there and is growing further, and with mental health. So these are the four themes we are seeing emerge in this community that is giving now around 200 million USD each year to India for India.

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Vanavil (Rainbow) Trust, Tamil Nadu: Revathi Radhakrishnan, managing trustee, in conversation with mothers from Boom Boom Mattikarar and Narikuravar nomadic tribes, about their children’s education.

LUX: How important is trust to collaborative philanthropy?

NN: Trust has always been a cornerstone for anything we do, whether in business or philanthropy, in philanthropy even more so because you may be quite removed from the lived experience of what’s happening in these communities, or not know what it takes to make this kind of change.

You have to be patient, it takes longer to measure impact, and costs a lot. So there is a lot of complexity. Ultimately, delivering on the impact really rests on our trusting that we are all aligned with the intent of where we’re all trying to get to, the change we want to see, and it is dynamic so it needs flexibility.

All players have to come in with those values and sometimes that is missing in the hustle and the urgency. So coming to the table with that trust and willingness to be flexible on all sides is important.

LUX: Finally, what is the relationship between trust and finance?

NN: Trust and finance are closely linked to the extent that you can structure finance in a way that enables trust. So trust means you do not have expectations of each other or of the work, yet you can structure the finance and the philanthropy with that flexibility. It is not about just giving money.

Trust-based philanthropy has taken on this kind of mania that you can write a cheque without understanding where it was spent but you have to ask how it made the difference. Trust is about clear communications, expectations, measurement and requires financial structures like blended finance, alternative business models and transparency about the areas which need subsidisation.

www.dasra.org

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Reading time: 11 min
dolphin statue in a fountain
dolphin statue in a fountain

Dolphin Square, Dolphin House

Justin Travlos is Global Head of Responsible Investment at AXA IM Alts. His management of a diverse investment portfolio is governed by one underlying principle: all decisions are made in the context of understanding where risk is – from a sustainability standpoint. Here, Travlos speaks to Samantha Welsh about the growing importance of proptech, and why sustainable strategy should not be an exercise in cherry-picking ‘green’ assets but embedded across the entire portfolio
Justin Travlos

Justin Travlos

LUX: You have a track record in driving successful sustainability strategies. Where did this interest come from?
Justin Travlos: Sustainability has long been a personal interest, but it first intersected in a professional capacity in 2007, when I became the head of sustainability for the commercial property business at an Australian real estate investment trust. I worked with a brilliant team to create the foundations of a strategy that was both sustainable and able deliver returns, and is still relevant and performing today. That balance is fundamental. I’ve always seen myself at the nexus of real estate development and sustainability, and the opportunity that brings to make places more appropriate both for people and for the planet.

LUX: Where has AXA been particularly successful in managing buildings to sustainability targets?
Justin Travlos: Asset regeneration always provides a canvas to enable change, and scale helps overcome some of the complexity often associated with these projects. While meeting the latest sustainability credentials is much less complex in new builds, they often raise questions around embodied carbon. Ultimately, it is equally, if not more, important to regenerate existing assets: poor performance of existing stock is a key area of focus for government and regulators when addressing climate change, and thus a key area of transitional risk (and opportunity) for us as real estate investors. Moreover, investing across a diversified, global portfolio allows us to benefit from a number of emerging synergies.

Follow LUX on Instagram: luxthemagazine

LUX: AXA IM Alts is Europe’s biggest real estate manager by Assets Under Management (AUM). How do you evolve a best governance strategy for a diverse portfolio of this size?
Justin Travlos: Integration into our investment processes is the key to governance: it was important that our strategy didn’t just have one best-in-class green fund or asset to showcase, but was embedded across our entire portfolio and integral to every investment decision. We look at a broader sweep of both financial and non-financial considerations, and so long as those decisions are made in the context of understanding where risk is, from a sustainability perspective, then that’s the right conversation to have.

While our strategy will continue to evolve, particularly in terms of implementation, it is formed around three the key pillars of decarbonisation, resilience and building tomorrow. Decarbonisation is about reducing our carbon footprint in line with the Paris Agreement targets. Resilience is about understanding the physical and transitional risks of climate change on our assets. And looking at both of these creates insights that inform the types of assets that we regenerate and build – shaping our investments to become building blocks for the future.

skyscraper in london with the road on time-lapse

22, Bishopsgate. Photo by Edmund Sumner

LUX: Is there variation in how regions adopt responsible investment strategies?
Justin Travlos: Yes, due to the different regulations and market practice in place across the globe. In the EU, businesses are now required to embed sustainability risk management into the investment process. AXA is now reaping the rewards from the groundwork that we laid down a long time ago. But our alignment to the regulatory environment in Europe will be subtly different to what is required in America or AsiaPac. The funds that we have in Australia, for example, are much further ahead in their adoption of ESG performance indicators because the market and its regulations governing environmental management and reporting are significantly advanced.

These strategies are also underpinned by data, much of which is still imperfect. As the dataset grows and visibility improves – and advances in technology will play a big part in this – the ability to finetune performance to reset those decarbonisation benchmarks to specific asset classes in specific countries will become invaluable. It will not only provide very clear targets for asset management teams but will provide a comparative global benchmark for measuring performance, something absent from most current sustainability reporting.

Read more: Standard Chartered’s Eugenia Koh on Next Gen Investors

LUX: To what extent are asset managers using proptech now?
Justin Travlos: There’s always been a rule of thumb that if you pick up an asset that’s just been managed in the day-to-day, you can almost guarantee a 20 to 30% improvement in energy efficiency, simply by utilising the latest technology – which is obviously a win-win because it doesn’t require huge amounts of cap expenditure but does generate savings and financial returns.

Ultimately, some building infrastructure and systems may still need an entire overhaul, but proptech will be integral to assets’ value proposition going forwards, as owners and occupiers ascribe greater value to the provision of these data points to achieve their ESG ambitions.

a path in a forest

Forestry Investment, Australia

LUX: Are we collectively doing enough?
Justin Travlos: Looking forwards, I take some comfort from the fact that in just 18 months, humanity has produced not one but several vaccines to bring a population of 7 billion people back from a global pandemic. This shows what can be achieved and I hope against a backdrop of increasing evidence of the impact that climate change is having on the world that that the same sort of ingenuity, thinking and collective effort will prevail. Ultimately, the actions that we take now will have a fundamental impact on where we end up by the end of the century, which is why the urgency of this topic has become central to our approach to sustainability and responsible investment.

LUX: What advice do you have for next gen clients running a lens over family office real estate portfolios?
Justin Travlos: From an ESG perspective, there are three key questions. First, can profitability of the investment be decoupled from carbon? Second, is a change in physical risk going to limit either the operating days of the asset, or the available capital to acquire the asset at the end of the investment horizon? And third, how does the asset support its occupants?

Justin Travlos is Global Head of Responsible Investment at AXA Investment Managers Alts

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Reading time: 5 min
woman on sofa
woman on sofa

Katrina Aleksa Ryemill is a co-founder of Association of Women In The Arts

Non-profit organisation Association of Women In The Arts was founded with the ambition of providing a networking and mentorship platform for women working in the arts in the UK. Since the pandemic, their membership has expanded globally with a new online programme. As part of our ongoing philanthropy series, Samantha Welsh speaks to the organisation’s co-founder Katrina Aleksa Ryemill about the importance of a professional support network, adapting to a digital world and expanding globally

LUX: Tell us about the Association of Women In The Arts, and why is it already such a powerful organisation?
Katrina Aleksa: Since our beginning in February 2016, AWITA’s main focus has been to bring the inspirational women working within the art world together, and this remains our core strength to this day. AWITA’s membership includes gallerists, curators, art advisers and academics as well as auction houses, museum, public sector and art fair professionals.

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Quite simply our members are our key strength and what makes us the powerful organisation that we have become. For so long there was no place where women, who are underrepresented in top positions in the art industry (as they are in many others), could unite, network and help each other in a safe and positive environment. AWITA provides just that, and every time another fantastically talented woman joins our network we become stronger, better represented and more powerful. Leaders across the art world can share and collaborate in a safe way. We adapt and pivot very quickly to changing times the current crisis is just one example of it. Quite simply, we are stronger together.

women standing on stage

AWITA Great Women Artists: why women? panel discussion at Sotheby’s London in partnership with Phaidon. From left to right: Katrina Aleksa Ryemill, Harriet Loffler, Marina Ruiz Colomer, Wells Fray-Smith, Mary Findlay, Rebecca Morril, Kate Gordon. Photograph by Pedro Lima

LUX: What experience and expertise do you look for in your members?
Katrina Aleksa: AWITA is a non-profit membership organisation open to women with a minimum of five years’ experience in the art world. We want gallery owners to connect with curators, arts journalists to connect with dealers, art advisors to meet academics in a lively, informal atmosphere. We believe in collaboration over competition, and want the membership to include as many different voices as possible.

LUX: AWITA is already the most connected network in UK for women in the visual arts, what do you think attracts women who are already influential in their fields?
Katrina Aleksa: Honestly, I think it’s the calibre of women who are already in the network. It’s a safe place to grow and share and ask questions. I think at whichever point somebody may be in their career, you still have questions even if you have been in art world for 20 or 30 years. Of course the questions may change as people advance through their careers, but many of the topics and challenges are the same.

Additionally, the nature of the art world, where creativity is at its core means that it constantly changes and challenges itself, arguably more than any other industry. Therefore, anyone working in the sector must also ensure they stay relevant and current, which means challenging, developing and growing your own thinking, and a network can really help with this. Nothing stays still for very long in the art world.

Of course, there is also the fact that women in senior roles can often feel alone due to their under-representation –  so many pieces of research have shown that women crave a network of peers, which of course is what AWITA is.

women in discussion

Rebecca Morril and Katrina Aleksa Ryemill (right) at the AWITA Great Women Artists event. Photograph by Pedro Lima

LUX: Do you have strong representation from non-UK based membership?
Katrina Aleksa: This is actually something completely new to us, not to mention very exciting. Ever since we set up there have always been a number of international applicants wanting to join and also numerous people who have wanted to set up AWITA entities in their local countries. However, whilst we always have wanted to do this we simply haven’t, until now, had the resources to expand internationally.

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We have, in many ways, really benefitted from the pivot we needed to make during these unprecedented times. Whilst we were very UK and London centric, organising some wonderful events that our members would attend and enjoy, the pandemic has meant that we had to move all of our events online. No longer were we “restricted” to the UK and predominantly London-based events that we were offering. We are now able to reach incredibly inspirational women across the globe that we would of not been able to do locally in London. Our membership has expanded internationally as result of that and I’m so proud that our international membership group is now the fastest growing aspect of AWITA.

LUX: What real life platforms are you working on at the moment?
Katrina Aleksa: We have recently launched a partnership with Cromwell Place, which is a first-of-its-kind exhibition and working space for galleries, dealers, collectors and art professionals seeking a presence in central London. With creativity, connection and collaboration at the core this partnership amplifies our mission and values.

female focused event

Dressed for the art world AWITA event with Edeline Lee at Fenwicks London. From left to right: Indre Serpetyte-Roberts, Kate Gordon, Edeline Lee, Sigrid Kirk, Polly Robinson Gaer, Linsey Young, Helena Lee, Katrina Aleksa Ryemill. Photograph by Pedro Lima

LUX: During Covid, AWITA has turned adversity into advantage by running a series of hybrid events. What works well for live-streaming, and will you continue to exploit this format post-Covid?
Katrina Aleksa: Absolutely! I actually think that this “hybrid model” where the event is both online and ‘in person’ has huge potential to continue to ensure that we are offering a more inclusive model for our members around the world, whilst also offering what so many of our members crave: an in person experience immersed in the art world, surrounded by like minded art professionals.

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That said, I think the mood from everyone, not just our members, is that we have all now overdosed on “zoom” already. So the challenge is making the authentic and positive experience of our online programme running alongside our live events. I don’t think we will ever return back to being 100% online or offline, I believe the future and certainly 2021 will be a balance between both.

LUX: You have also focused on creating digital content – what kind of conversations has this facilitated?
Katrina Aleksa: We are still learning. My favourite quote is ‘flying a plane while building it’ and this is exactly what we are doing right now. We have had a tremendously positive response from our members, but we need to keep it up, not rest on our laurels and keep adapting to changing times.

panel discussion

Finding Balance: How to thrive in a 24/7 world panel discussion with AWITA at Phillips. From left to right: Catherine Blyth, Jo Stella-Sawicka, Angela Choon and Dr Zoé Whitley. Photograph by Pedro Lima

LUX: Have perspectives and priorities altered in 2020?
Katrina Aleksa: I don’t think there has been anyone who hasn’t been affected by current health crisis, whether you are in or outside of the art world, or whether you are an employer, an employee or even self-employed.

We, of course, had to adapt and pivot to be able to stay ahead of the curve and support our members. It was a priority for us to support our members, in whichever way they needed help or advice. We even instituted a very casual weekly coffee morning, online, which some of our members described as a lifeline, and a welcome break from home-schooling.

LUX: How have collectors adapted to this changed world?
Katrina Aleksa: I love that the art world hasn’t stopped! Whilst it has been very challenging for many people, I have also seen some people really flourish. Whether that be artists that were “breaking through” or professionals who were taking on new challenges, there have been many positive stories that we should all look at for motivation and inspiration. Of course, it is a challenging time and my heart goes out to all of the people who have been ill or have suffered losses during this difficult period, but the world keeps turning and art works have been bought and sold. Many online auctions have been showing a great increase in their results and like many other online businesses have really thrived. I always say, change is always happening and like in nature, the ones that are able to evolve and change are ultimately best positioned to survive and thrive. This pandemic has, in my mind, just presented a sped-up opportunity for change.

LUX: What sort of political or cultural partnerships are your members potentially exploring and can AWITA reach out to their sisters in parts of the world where women’s talents and voices are stifled?
Katrina Aleksa: It’s important to continue to build networks. We are talking to women in organisations around the globe and will be concentrating on leadership and new structures and models. We are concentrating on finding innovative and useful ways to keep the important conversations that need to be had going. While we may not be able to see each other in person, we can still stay connected.

LUX: What are your next plans?
Katrina Aleksa: With the huge increase across our membership we are finding that we are now able to represent more women than ever before, looking at tackling so many diverse challenges and opportunities around the art industry. Every new member we have ensures another voice and another way of thinking, so we will continue our growth drive – adding women into our network from all over the globe and then empowering them through more mentoring, networking and professional development.

Find out more: awita.london

Samantha Welsh is a contributing editor of LUX with a special focus on philanthropy.

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