Faith can move mountains, perhaps even close the climate financing gap. A recent Global Landscape of Climate Finance Report by Climate Policy Initiative states that an estimated $7.4 trillion is required annually until 2030 to meet global climate goals. Faith-aligned funders, from philanthropists to foundations, have an immense and largely untapped potential to mobilise capital at scale. According to Saïd Business School, 360 faith-aligned assets under management were worth approximately $5 trillion as of 2022. However, only three per cent (about $150 billion) was directed towards social impact. This highlights a significant opportunity to align a greater share of faith-aligned capital with the sustainable development goals, particularly climate action.
Ancient traditions, urgent imperatives
Environmental stewardship has been a core tenet across the world’s major faiths. From reverence for rivers and forests in indigenous traditions to scriptural guidance on compassion for all life, faith communities have long championed the connection between people and planet. This ethical foundation is increasingly being recognised as a critical lever for climate action.
In recent years, religious leaders have spoken out with clarity and urgency. Addressing the Vatican, Pope Leo XIV remarked, “We cannot separate our treatment of the Earth from our treatment of the poor. They suffer together when we choose exploitation over responsibility.” His stance reflects the Catholic Church’s ongoing commitment to climate action.
Similarly, in 2015, Islamic leaders issued the Islamic Declaration on Global Climate Change, urging the faith’s 1.6 billion adherents to recognise environmental stewardship as a moral and spiritual duty.
While the spiritual and faith commitment is clear, faith-aligned capital in Asia has remained under-mapped, under-leveraged, and often absent from mainstream climate finance dialogues.
Formalising faith-aligned giving for climate action
In Asia, recent years have seen greater formalisation of faith-aligned capital deployment, especially within Islamic and Christian communities, with nascent but growing interest among Buddhist, Daoist, Hindu and Sikh groups. These communities share values that naturally align with impact investing: long-term thinking, ethical responsibility, and a commitment to the common good. What’s emerging are faith-compatible financial frameworks, instruments and principles that enable believers to invest without compromising religious beliefs.
In Islam, zakat (an annual 2.5 per cent wealth contribution for the poor) and waqf (charitable endowments) are increasingly being channelled toward climate-linked outcomes like education, clean energy, and health. Christianity’s practice of tithing (donating 10 per cent of income) is also expanding into impact-aligned community development and ethical investment. Hinduism advocates dana (giving), while Sikhism encourages seva (selfless service), both offering strong philosophical bases for structured social investment.
In Indonesia, the Green Islam movement is reframing climate action as a religious obligation. At Jakarta’s Istiqlal Mosque, the largest mosque in Southeast Asia, solar panels, rainwater harvesting, and sermons on environmental care have become part of daily practice. Religious schools and interfaith youth groups are also taking up the call, fostering collective ownership of the climate cause.
From ad hoc to intentional: Strategic pathways for faith-aligned capital for climate action
To fully unlock the potential of faith-aligned philanthropy, giving must move beyond charitable intent to strategic capital deployment.
According to the How Values and Beliefs Shape Giving in Asia report, one key recommendation is for faith-aligned financial products such as Shariah-compliant green sukuks, ethical stewardship funds, and pooled endowments to support environmental goals while adhering to faith principles.
And financial products alone are not enough. Many faith-based organisations operate informally, without the institutional capacity to track impact or scale solutions. Investments in governance, training, and partnerships with intermediaries can help these institutions evolve into formal social investors.
Climate organisations, in turn, must view faith-aligned actors as critical allies. Co-creating programmes that resonate with religious principles builds trust, enhances relevance, and unlocks grassroots reach for climate resilience and adaptation efforts. Faith institutions often have deep local reach, making them ideal collaborators for climate adaptation, awareness, and resilience-building efforts.
Platforms, partnerships, and the power of the next generation
Digital platforms are playing a key role in formalising faith-aligned giving. GlobalSadaqah, for instance, is an Islamic social finance platform that connects donors with verified causes, offering transparency, compliance with zakat and waqf principles, and structured channels for recurring and impact-oriented giving. Such platforms can turn one-time donations into strategic, long-term investments aligned with faith and climate goals.
At the collaborative level, initiatives like the UNOC3 Multi-Faith Declaration demonstrate the potential of collective moral and financial capital. By bringing together diverse faith groups to support 30 per cent of the world's ocean protection by 2030, the declaration champions blue-carbon solutions, rights-based ocean governance, and a shared ethical framework for nature conservation.
The future, however, lies with the next generation of faith-aligned leaders and givers. Grounded in tradition yet fluent in ESG and blended finance, young faith-aligned philanthropists and emerging leaders of religious institutions are more likely to support blended finance and data-driven philanthropy. Their voice and visibility will be vital to shifting mindsets from charity to systems change.
A force for climate and community
Faith-aligned philanthropy remains one of the most values-aligned, trusted, yet underutilised levers in the climate movement. It is deeply embedded in the cultural and spiritual life of communities, and with the right structures and intent, it can catalyse climate action from the grassroots to the global level.
With intentionality, collaboration, and strategic alignment, faith-aligned giving can be a powerful force to bridge the climate finance gap. From ancient wisdom to modern tools, it offers not just hope, but a pathway to action rooted in both conviction and compassion.
Sangeetha Watson is the assistant director, Insights, AVPN. The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK.
