Global climate crises: A stark reminder

The global climate crises and Earth Overshoot Day, which fell on July 25th in 2024, serve as an undeniable reminder that we are consuming resources at an unsustainable pace. We are using twice the Earth's resources each year, exceeding the planet’s ability to regenerate. This overconsumption pushes humanity beyond a safe operating space, known as the Planetary Boundaries, and risks irreversible environmental degradation. Six out of the nine global boundaries have already been breached, leading to alarming declines in biodiversity, pollution, and worsening climate events.

The climate crisis is no longer a distant threat—it’s a reality impacting lives globally. From severe droughts in Northern Italy to catastrophic wildfires in California and Canada, to devastating floods in Bangladesh and Spain, we are witnessing the destructive power of climate change. These events are exacerbating social inequalities, driving migration, and intensifying global conflicts.

The role of the financial sector in creating solutions

Despite the severity of these challenges, there are opportunities to change the trajectory. A hopeful vision for navigating these challenges comes from Kate Raworth’s “Doughnut” model. This model urges us to find a balance between the social foundation, which ensures that everyone’s basic needs are met, and the ecological ceiling, which protects the Earth’s life-support systems. Within these two boundaries lies the “doughnut” space—a safe and just environment where humanity can thrive.

Achieving this balance requires aligning financial goals with environmental goals. It calls for a new definition of success, one that values not only financial returns but also measurable, tangible impact on society and the planet. The financial sector—and family offices, in particular—has a unique role and responsibility in addressing these interconnected crises. With capital, networks, and influence, impact investors can drive vital solutions by funding early-stage start-ups and impact funds dedicated to tackling these challenges. At VP Capital, by embracing the Doughnut model, we aim to accelerate progress toward a more sustainable and just world.

Impact-first strategy: A commitment to real change

At VP Capital, we have been committed to impact investing since 2018. Our strong heritage – sustainable progress strategy helped us understand the complexities of impact. Now, with our 2024-2028 strategy, we are taking a bold step forward. We’re shifting from a “finance-first with an impact lens” approach to one that places impact at the forefront—believing that financial returns and social good can and should go hand in hand.

We believe that by channelling capital directly into innovative, early-stage start-ups, we can catalyse solutions to the most pressing challenges of our time. Our mission is to create a thriving planet—socially, economically, and ecologically—for future generations.

By acting now, with urgency and responsibility, we can build a world where humanity thrives within the limits of our planet. This is our call to action—and we invite others to join us in making a lasting difference.

Sources: Rockström, J., Richardson, L., Steffen, W., Mace, G. M., et al. (2023). Earth beyond six of nine planetary boundaries