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.