Making Money Work for People and Planet: New Report Reveals How Communities Can Transform Financial Systems for Social Justice

OAKLAND, Calif., Jan. 13, 2025 /PRNewswire/ -- Oakland-based non-profit Impact Experience has unveiled groundbreaking research at a crucial time when financial markets are increasingly intertwined with social change. This study, which concluded with a two-day convening, involved over twenty U.S. organizations and financial institutions from impact investing, fossil fuel divestment, human rights, and regenerative agriculture. It demonstrated how communities can effectively leverage financial systems for positive change.

"At this critical juncture, when we're seeing pushback against corporate social responsibility, our research shows that financial institutions must move beyond traditional metrics to truly understand their role in advancing equity and climate action. When we align capital with community needs, we create lasting environmental and social transformation pathways," said Yejide Olutosin, Director of Business Climate Finance at Impact Experience.

Why This Matters Now
Financial institutions shape our communities' futures - from housing access to business development - yet their decisions often exclude those most impacted. As corporate DEI initiatives and ESG investing face mounting opposition, communities struggle with urgent challenges: soaring housing costs, climate impacts, and restricted access to capital, particularly in historically marginalized areas.

Despite these headwinds, Impact Experience's new report reveals practical strategies for change. Communities are successfully partnering with financial institutions to expand capital access in underserved areas and redirect investments toward clean energy and local wealth building. "In this moment of backlash against corporate responsibility, it's even more crucial that we demonstrate how aligning finance with community needs creates stronger, more resilient local economies," noted one study participant.

This timely research provides practical pathways for communities to overcome systemic barriers, build effective financial partnerships, and advance solutions that benefit both people and the planet.

Innovation Across Sectors
The case study interviews culminated in a two-day convening demonstrating cross-sector collaboration's power. Over 30 leaders from impact investing firms, climate justice organizations, and Indigenous rights groups joined to share successful strategies and forge new partnerships.

The Banking Black & Green initiative emerged as a compelling example of this innovative approach. This groundbreaking partnership between Hip Hop Caucus, a social justice organization with deep grassroots networks, and Adasina Social Capital, an impact investment firm, shows how combining community organizing with investment expertise can drive racial and environmental justice.

"The systemic shifts we need come from listening to communities—not just financial metrics—and centering their visions for change," said one community leader who participated in the convening. "When grassroots wisdom meets financial innovation, we create solutions that work for everyone."

From Ideas to Action: Three Powerful Strategies for Leveraging Finance for Movement-Building
Insights from the case study and the convening facilitated by Impact Experience revealed three actionable strategies that diverse organizations—such as grassroots movements, nonprofits, advocacy groups, and field catalysts—can implement to drive systemic change:

• Strategic Partnerships with Major Financial Institutions: Collaborate directly with banks and investment firms by aligning shared goals, leveraging data, and advocating for systemic policy changes to create large-scale industry shifts.
• Community-Based Financial Partnerships: Build long-term relationships with community development financial institutions (CDFIs), minority depository institutions (MDIs), and credit unions by prioritizing trust, engaging local stakeholders, and co-developing financial solutions that address community needs. This approach empowers grassroots organizations that foster sustained local engagement.
• Direct Action Campaigns can create immediate local impact through well-coordinated campaigns, grassroots mobilization, and coalition-building. Advocacy groups can use these campaigns to challenge harmful financial practices and promote accountability.

Looking Ahead
Impact Experience will host a virtual launch event in early 2025 to share findings and foster an ongoing dialogue between movement organizations and financial institutions. To learn more or get involved, contact Impact Experience at [email protected].

About Impact Experience
Impact Experience is a nonprofit organization that builds bridges between public, private, and community-led sectors to co-create solutions for systemic change.

Contact: Yejide Olutosin, (470) 242-7246, [email protected]

SOURCE Impact Experience