Hi Sarah, would love to connect. Supporting a climate fund (Existence Fund) and the Just Transition Fund - which could better leverage networks and communities for indigenous peoples who have to be at the center of the projects and outcomes. peterjhall2030@gmail.com
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Hi all,
Glad to be part of this community – I am representing Upaya Social Ventures, an impact-first investor supporting small & growing businesses that are creating dignified jobs for people living in extreme poverty. Having invested 42+ businesses and accelerated 73 businesses in India, we have been able to create 44,188 jobs opportunities over 5 different sectors.
For businesses in East Africa and India, we have launched a new alliance called ClimaFii with Shell Foundation, UK Aid, Accion, and BFA Global to support venture building and financial product design with the goal of making climate technologies more accessible to microentrepreneurs. You can read more on it here. The applications for entrepreneurs to apply will be live in the next few days!
We are happy to share our learnings and thoughts from the ground on your prompts.
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Fantastic. sarah.roberts@practicalaction.org.uk Looking forward to connecting.
A1: Businesses focusing on social and environmental impact in 2025 might consider a few insights. First, broad, uniform strategies risk overlooking the unique needs within one community, so using more nuanced assessment methods could help tailor solutions effectively. Second, inclusive technology is vital to ensure that individuals with limited connectivity or digital literacy are not excluded. Third, involving the community in both design and implementation can enhance local commitment and sustainability. Finally, measuring success solely in terms of profit can mask the broader value of these initiatives, so it might be helpful to integrate social and environmental indicators to gain a clearer view of real-world impact.
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Hi everyone - looking forward to the conversation. I focus on data, gender and continuous improvement at the William Davidson Institute. Would love to connect!
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Hi, I am Larry Reed, Executive Director of Thrive Lights. We bring the Stoplight assessment and coaching methodology to businesses, social enterprises and nonprofits in the US.
Great to be in dialogue with all of you!
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Greetings, all - Marc Schleifer here, Director of Development & Partnerships at CIPE, the Center for International Private Enterprise (www.cipe.org). My email is mschleifer@cipe.org, linkedin is Marc Schleifer - Center for International Private Enterprise | LinkedIn
A2: From my perspective, one notable challenge the social impact community could face in 2025 is addressing a wide range of needs within the same region, which might call for adaptable strategies that respect local contexts. I also believe that gaps in digital access could persist, so creating solutions that encompass infrastructure development and digital literacy training might prove essential. Another common concern is that many initiatives overlap, which can lead to inefficient resource use, so it might be wise to explore partnerships or shared platforms. Finally, I have noticed that measuring social impact often requires more than simply collecting quantitative data; qualitative insights and personal testimonies can enrich the overall understanding of what truly works on the ground.
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Thank you for the invitation, Business Fights Poverty Team!
I’ll take the opportunity to introduce myself, I’m Darleen Koops, a Programme Officer for Poverty Stoplight, a program that works as both a measurement tool and a methodology designed to tackle multidimensional poverty by empowering families to self-assess their well-being across 50 indicators (all of which are adaptable to various contexts). Our program is implemented in 59 countries across the world, combining data-driven insights with participatory approaches to drive locally tailored solutions and systemic change.
You can find me on linked in here.
Hi everyone, this is Monica Schroeder, Director of Global Advocacy at Build Change, where we have a vision to make every home disaster resilient. Looking forward to the discussion today and to exchanging with you all. Feel free to connect with me on LinkedIn: https://www.linkedin.com/in/monica-o-schroeder/
What priorities or actions should businesses focus on in 2025 to maximize their social and environmental impact?
1. Strengthen Stakeholder Engagement
- Why: Collaboration with stakeholders, including local communities, NGOs, and governments, proved critical in advancing social and environmental objectives in 2024.
- Action: Actively involve stakeholders in decision-making, co-create solutions, and establish partnerships that align business goals with social and environmental needs.
2. Integrate Sustainability into Core Strategies
- Why: Companies that embedded sustainability into their business models achieved more meaningful and lasting impact.
- Action: Transition from ad-hoc CSR activities to systemic integration of sustainability, such as adopting circular economy practices, reducing carbon footprints, and investing in renewable energy.
3. Focus on Education and Digital Inclusion
- Why: Digital literacy and access to education emerged as transformative tools in bridging socio-economic gaps, particularly in rural and underserved communities.
- Action: Scale programs that enhance digital skills, provide access to digital infrastructure and empower marginalised groups, particularly women and youth.
4. Address Climate Resilience
- Why: Climate-related challenges intensified in 2024, impacting vulnerable communities and businesses.
- Action: Invest in climate-resilient infrastructure, sustainable agriculture, renewable energy, and disaster mitigation measures to protect ecosystems and livelihoods.
5. Promote Equity and Inclusion
- Why: Inclusive approaches yielded higher social returns by addressing systemic inequities in gender, race, and socio-economic status.
- Action: Establish programs and policies that advance diversity, equity, and inclusion (DEI) at all organisational levels and ensure equitable access to opportunities.
6. Innovate Funding and Investment Models
- Why: Traditional funding models showed limitations in scaling social impact projects. Innovative approaches like impact investing gained traction.
- Action: Explore blended financing models, crowd-sourced funding, and partnerships with social enterprises to sustain impactful initiatives.
7. Leverage Technology for Social Impact
- Why: Technology adoption proved essential in scaling impact efficiently in areas like healthcare, education, and rural development.
- Action: Develop and deploy affordable, scalable tech solutions that address critical challenges, such as telemedicine, e-learning, and renewable energy technologies.
8. Measure and Communicate Impact
- Why: Transparent reporting and impact measurement enhanced trust and accountability among stakeholders.
- Action: Adopt global frameworks such as ESG (Environmental, Social, and Governance) and SDG (Sustainable Development Goals) reporting to track progress and communicate achievements effectively.
9. Empower Local Communities
- Why: Community-driven solutions had a stronger and more sustainable impact in 2024.
- Action: Support local enterprises, engage community leaders, and implement programs that align with the specific needs of each region.
10. Adapt to Evolving Consumer Expectations
- Why: Consumers increasingly preferred brands with clear social and environmental commitments.
- Action: Build purpose-driven brands, enhance product transparency, and align offerings with ethical and sustainable practices.
A3:
Communities are partners, not “beneficiaries”
Respect local expertise and lived experiences. Solutions co-created with individuals who understand their own needs and aspirations are more resilient and scalable.
Data Is MOST POWERFUL when OWNED by the PEOPLE
In the Poverty Stoplight (www.povertystoplight.org) model, families and individuals ‘own’ their personal data and use it to set goals. Empowering communities with insights into their own progress fosters agency and significantly improves program outcomes.
Technology should enhance not replace Human Connection
Digital tools are invaluable for scalability and efficiency, but they must be integrated in a way that maintains empathy and personal engagement. It’s the combination of technology and human interaction that drives sustainable change.
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100% -really worried about further potential legislative changes we are seeing at the EU level…
2.What are the most significant challenges the social impact community will likely face in 2025, and how could we approach them?
. Economic Instability and Funding Constraints
- Challenge: Global economic uncertainties, including inflation, geopolitical tensions, and post-pandemic recovery struggles, may limit the availability of funds for social initiatives.
- Approach:
- Diversify funding sources through innovative mechanisms like blended finance, impact investing, and public-private partnerships.
- Focus on cost-effective models and prioritize scalable, high-impact initiatives.
- Strengthen transparency and accountability to build trust with donors and investors.
2. Climate Change and Environmental Crises
- Challenge: Increasingly severe climate events and environmental degradation will disproportionately affect vulnerable communities.
- Approach:
- Prioritize climate resilience projects, such as sustainable agriculture, renewable energy, and disaster risk reduction.
- Engage communities in co-creating solutions that blend traditional knowledge with modern technologies.
- Advocate for stronger climate policies and collaborate with businesses to integrate green practices.
3. Rising Inequality
- Challenge: Economic, digital, and social inequalities may deepen, marginalizing vulnerable groups and hindering equitable development.
- Approach:
- Implement targeted programs to empower underserved populations, particularly women, youth, and indigenous communities.
- Strengthen education and digital inclusion initiatives to bridge the gap in access to opportunities.
- Advocate for policies that promote fair wages, healthcare access, and equal opportunities.
4. Political and Social Polarization
- Challenge: Political instability, growing mistrust in institutions, and divisive ideologies may undermine collective efforts to drive social change.
- Approach:
- Focus on building coalitions that transcend political and ideological boundaries.
- Foster community dialogue and conflict resolution initiatives to promote understanding and collaboration.
- Leverage storytelling and social media to highlight shared goals and successes.
5. Technology’s Dual Impact
- Challenge: While technology offers immense potential, its misuse (e.g., misinformation, surveillance) and unequal access could exacerbate challenges.
- Approach:
- Promote ethical tech development and ensure accessibility for marginalized groups.
- Utilize technology for good, such as deploying AI for climate modeling or blockchain for transparent aid distribution.
- Advocate for regulations that minimize harm and encourage equitable access.
6. Mental Health and Burnout
- Challenge: Social impact practitioners and community members may face burnout due to the increasing scale and complexity of challenges.
- Approach:
- Incorporate mental health support into organizational structures and community programs.
- Promote work-life balance and create safe spaces for practitioners to share experiences and seek support.
- Advocate for systemic changes to reduce societal stressors contributing to mental health challenges.
7. Resistance to Change
- Challenge: Resistance from stakeholders, including governments, businesses, and communities, can slow the adoption of innovative solutions.
- Approach:
- Build trust through transparent communication and evidence-based advocacy.
- Demonstrate the tangible benefits of proposed changes through pilot projects and success stories.
- Engage champions within resistant groups to drive buy-in.
8. Global Health Threats
- Challenge: Emerging health crises, such as pandemics and antimicrobial resistance, may strain resources and divert attention from other critical areas.
- Approach:
- Strengthen healthcare systems, focusing on rural and underserved regions.
- Invest in preventive measures, including vaccination programs and health education.
- Build multi-sectoral collaborations to address health crises holistically.
9. Measurement of Impact
- Challenge: Demonstrating tangible, long-term social impact remains difficult, especially for complex global challenges.
- Approach:
- Adopt standardized metrics and frameworks, such as the SDGs or ESG criteria.
- Leverage technology for real-time data collection and impact assessment.
- Share findings transparently to build credibility and attract support.
10. Balancing Urgency and Sustainability
- Challenge: Immediate crises often overshadow long-term solutions, leading to reactive approaches.
- Approach:
- Develop dual strategies that address urgent needs while building sustainable systems.
- Educate stakeholders on the importance of balancing short-term relief with long-term resilience.
- Secure funding models that support both immediate action and sustained progress.
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Sharing more in hopes of connecting with those who are seeking to empower women to fight for resources to build resilient communities in the face of climate change in partnership with businesses.
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Answer to Question 1:
I think one of the priorities for businesses for this year should be to empower people.
When people are empowered, they inspire and uplift those around them, creating a ripple effect of positive change. Yet, in the pursuit of big-picture goals, it’s easy to lose sight of the everyday challenges our employees or local community face. True empowerment begins with understanding these realities and taking intentional steps to address them.
At Poverty Stoplight, we’ve seen how focusing on individual well-being doesn’t just improve lives — it transforms communities. We believe that when businesses prioritize grounded action and offer real support, they create a culture of shared growth, resilience, and lasting impact.
For example, our Business Stoplight tool helps companies provide employees with a “life map” — a clear and actionable view of their well-being across areas like financial security, health, education, and housing. By using this tool, organizations can help individuals identify their challenges and, together, take meaningful steps forward. This approach creates genuine connections and shows employees that their voices and experiences matter.
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A1: What priorities or actions should businesses focus on in 2025 to maximize their social and environmental impact
We would consider three top priorities which are also guiding our strategy at BBVA Microfinance Foundation:
- Climate change: adaptation, mitigation, just transition and biodiversity:
- Inclusion of vulnerable population: women, migrants, young, old, rural, indigenous/afrodescendant…
- Financial and Digital inclusion.
Regarding climate change:
Adaptation to climate change: considering the temperature rise and the latest predictions and the increase in the number and severity of climate events, there is an urgent need to mobilize more resources, technology and knowledge/capacity building, both from the public and private sectors, to finance adaptation to climate change, especially for developing countries and the most vulnerable populations, which will be the most affected, thus complying with fairness and equity and avoiding that millions of people will fall into poverty due to climate change. Also there is a need to take into account the impact on women and girls, since they are 14 times more impacted by climate change than men according to the UN.
However, by 2025 and for the coming years, resource mobilization will be a challenge. While The New Collective Quantified Goal (NCQG) on Climate Finance, established at COP29, aims to deliver $300 billion annually to developing nations by 2035, this is still insufficient compared to the trillions needed.
Decarbonization/Reduction of greenhouse gas emissions: In 2025,at COP 30, this will be very relevant as all countries will have to present their updated NDCs where they will present their commitments to reduce greenhouse gas emissions and adaptation. It is also expected that these will address more ambitious (quantifiable) emission reduction targets, including sectors such as land use change and forestry and recognizing the importance of nature based solutions such as setting conservation and restoration targets for forests and other ecosystems and in general aligned with the National Biodiversity Strategies and Action Plans (NBSAPs). These international and national biodiversity and mitigation targets will require alignment for private sector action and financing to achieve them.
Just Transition: However, it is important to highlight the importance of just transition, as the economic and social changes to be implemented to achieve decarbonization goals may lead to risks of social inequity, displacement and economic disruption, including unemployment. Although low-carbon economies offer an opportunity for job creation, the ILO estimates that around 80 million existing jobs could be lost. Stakes are especially high for the countries and communities that still depend on fossil fuels and other emissions-intensive sectors for their livelihoods (WRI, 2024).
We must work on adaptation solutions to improve the resilience of vulnerable populations. In the field of microfinance, the sector in which BBVAMF operates, and considering the international context, one of the priority issues includes the mobilization of financing for adaptation (green microcredit and microinsurance) of the most vulnerable, precisely those who are most impacted by climate events. (To know more about our work please refer to our website and [social performance repor][(https://www.fundacionmicrofinanzasbbva.org/informes/2023/wp-content/uploads/2024/06/2023-Social-Report.pdf).
Likewise, one of the priority areas is to raise awareness among clients of the risks of climate change so that they understand how their businesses could be impacted by climate change and how they can implement adaptation measures to mitigate the risks. Regarding risk it is important to assess how climate change can impact the economic activities of our entrepreneurs, with systems that provide relevant and timely data on exposure to different climate variables and are crossed with the sensitivity and adaptation capacity. It is essential to improve their resilience and preparedness with our value proposition. In addition,we aim to promote the adoption of cleaner technologies (such as household appliances, means of transportation, among others) that primarily result in savings for entrepreneurs, in addition to the positive contribution to climate change mitigation.
Inclusion of vulnerable populations such as women, migrants, young and old, rural, indigenous/afrodescendants
Beijing+30: in terms of gender equality the review of the Beijing Declaration and Platform for Action will be fundamental, in which governments, activists and the United Nations will evaluate progress, address difficulties and allocate resources with the agenda as a reference. Also, climate change will cause the migration of millions of people so both themes are intertwined. 2025 marks a pivotal year for gender equality, as the global community faces both significant challenges and critical opportunities. Despite decades of progress, we are currently facing stagnation and pushback in key areas of gender equality, exacerbated by rising needs and declining financial resources. In this context, a renewed sense of urgency and collective action is necessary to accelerate progress and address the growing challenges.
Specifically in microfinance - BBVAMF, the focus will continue to be the inclusion of vulnerable people, especially emphasizing women (60% of the people the Foundation serves: 1.8 million female entrepreneurs by the end of 2024) so that they can develop their productive activities and value offer oriented that improves their wellbeing. Women still face lower levels of employment and financial inclusion which is essential to boost their microentreprises. In addition, it is also important for microfinance to reach the most vulnerable groups and/or minorities such as migrants, indigenous populations, the elderly and young people, among others, to guarantee their financial inclusion.
Financial and Digital inclusion.
The magnitude of the financial inclusion challenge in society’s vulnerable segments means that further work must be done to reach the segments furthest away from the financial system, facing up to the challenge of making small-scale transactions sustainable.
Regarding digital inclusion, there are still 2.5 billion people who do not access the internet according to GSMA. Women, migrants and vulnerable populations are also the most unconnected who are prevented from accessing technologies and the opportunities they offer to study, grow their businesses or find new markets. In this regard the challenge is to lower the cost of the internet and handsets that are still unaffordable for many.
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For me the three questions are inter-related. The reality of our current situation is that the business environment for doing good got tougher. We need to refine the angle we approach these issues from a little by leaning more heavily into the business case for prosocial and pro-environment business practices.
We have always offered arguments of principle and pragmatism (“it’s the right thing and the smart thing”) but my sense is that the argument from pragmatism could be stronger. One core challenge is that sales data is proprietary and so even if the analyses were funded and being done, it’s hard to get enough of it to say something like “if you do this then that happens in terms of sales lift”.
So we need more evidence that shows that pursuit of social and environmental impact has positive impacts that speak to CFOs’ incentives and concerns, and to do that we need to broker collaborations which include both financing generation of that evidence and overcome the barrier of sharing of proprietary data that makes this possible. As an example, see Unstereotype Alliance’s “Inclusion=Income” report which makes a case for the marketing and communications industry promoting diversity in advertising (https://www.unstereotypealliance.org/sites/default/files/2024-09/INCLUSIVE%20ADVERTISING%20(Business%20case)%20WEB.pdf).
My biggest concern is that the new EU regulations drive much of business investment and action on social issues into the arms of the legal departments. Social impact by legal checklists and narrow risk assessments. So one priority is for business to take steps to have a robust risk assessment of social performance.
Worker health beyond OSH is seen as a nice to have. We believe it is essential part of overall social and environmental impact. And worker health rights are not limited to OSH.
The other priority is for companies to remain engaged with civil society and labor. We’re seeing many in business no longer willing to speak in public – for understandable reasons given the anti-ESG attacks. That said, dialogue and exchange are critical. Creating spaces where this can happen.
The Universal Access Project (UAP) of the UN Foundation, for instance, was part of creating a pooled corporate fund, called the Resilience Fund for Women in Global Value Chains. It invests in women-led organizations in Bangladesh, India, Cambodia and Vietnam. The focus is on health, safety and economic resilience – yet the organizations also tackle a much wider range of issues.
The Resilience Fund creates a range of safe spaces for ongoing dialogue with organizations working in difficult situations and on issue directly relevant to social impact. We see this as a complement to the essential direct dialogue with workers and their representatives as part of due diligence and effective community engagement. We’ll be discussing this at an OECD side session on February 10th at 5:45 pm CET.
A2: What are the most significant challenges the social impact community will likely face in 2025, and how could we approach them?
International politics and its impact on climate and social issues:
Climate change and inclusion: The geopolitical landscape and conflicts such as those in Gaza, Ukraine and Sudan have reshaped international priorities, raising concerns about the future of global cooperation on climate action (Oxford Economics, 2024).
In addition to this, Trump’s new term in office generates uncertainty regarding global commitments on climate change due to the exit from the Paris Agreement and the implementation of economic measures that could affect the country’s decarbonization path. Also a regression in women’s, LGTBIQ+ and migrant’s rights, since there is a pushback against the WOKE movement.
Likewise, in Europe, there is political uncertainty in Germany, France and other economies that could affect the unanimity of climate policies and with the consequences that these setbacks could cause in the short and medium term.
Migration: Additionally, in terms of migration, it is expected that with Trump’s new mandate, political movements in Europe and the political situation in Latin America, very strict migration measures will be established, which will affect the migration situation.
Economic growth: Especially in the Latin American area where BBVAMF operates, according to ECLAC, many experts believe that growth of close to 2.4% or 2.5% this year will not be sufficient for the region’s needs. Considering a growth of this magnitude, the low pace of job creation, high informality and significant gender gaps in the region’s labor markets will persist, which will impact the economic and living conditions of the most vulnerable people in the region.
How they should be addressed will depend on the organization’s scope of action. All variables should be evaluated to understand to what extent it will be impacted and how it could contribute given the existing constraints.