The Russell Family Foundation has launched an ambitious catalytic climate finance program that deploys its entire $100 million balance sheet to support climate solutions. The Gig Harbor, Washington-based foundation initiated the program four years ago, leveraging investments, grants, convenings, and advocacy to advance decarbonization and nature-based climate solutions.
According to a new progress report released by the foundation, 95% of its investment portfolio has been shifted to mission-aligned investments. Foundation leaders Kathleen Simpson and Sarah Cleveland indicate the strategy aims to inspire other foundations and family offices to increase their climate commitments despite waning support in some sectors.
Catalytic Climate Finance Strategy Flips Traditional Philanthropy
The foundation’s approach represents a departure from conventional philanthropic models. Rather than leading primarily with grantmaking, the Russell Family Foundation prioritizes investments first, then supports those with strategic grants. While its grantmaking remains locally focused, the investment strategy spans global opportunities.
Simpson told ImpactAlpha that the foundation is “activating every tool at our disposal” to advance solutions that are both impactful and equitable. The strategy recognizes that family foundations, though smaller than institutional investors, can be more nimble and flexible with a wider variety of tools to support their missions.
Decarbonization and Nature-Based Solutions Drive Portfolio
In the decarbonization sector, the foundation has invested in solutions addressing top-emitting industries including energy, buildings, and manufacturing. These investments have primarily come through intermediaries such as Generate Capital, Vision Ridge, Energy Impact Partners, and SOSV. Additionally, the foundation invested in Jonathan Rose Companies, a developer of green, affordable mixed-use buildings.
The foundation’s Pacific Northwest location has influenced a strong focus on regenerative forestry. Investments include forest conservation and regeneration groups such as BTG Pactual Timberland Investment Group, Lyme Timber, and EFM Investments and Advisory.
Aspirational Investments Target High-Impact Opportunities
The foundation carved out an “aspirational” category for higher-risk, high-impact catalytic investments. According to Simpson, this allocation is “designed to support newer, developing climate solutions and to make catalytic investments that can unlock outcomes—or third-party capital—that might not happen otherwise.” These deals are sourced and vetted by the foundation’s own staff rather than its outsourced chief investment officer.
Notable aspirational investments include $500,000 to Organically Grown, a Portland-based purpose-driven trust supporting organic farmers. The foundation also committed $250,000 to Dirt Capital Partners, which helps regenerative farmers acquire land through long-term lease-to-own arrangements and joint ventures.
Another significant investment went to Forterra’s Strong Communities Fund in Seattle. The organization, which began as a land trust, now purchases working land to keep it in community hands. Projects include property acquisition in Tacoma’s historically Black Hilltop neighborhood and a 48-acre housing development in Hamilton, Washington, designed to relocate flood plain residents while restoring salmon habitat.
Public Markets and Future Climate Finance Priorities
In public markets, the foundation allocated $19.3 million last year with three sustainably-minded managers: Breckinridge for US fixed-income, Terra Alpha for global equity, and Xponance, a diverse-owned firm advancing decarbonization and diversity. The foundation also became the first to commit to Galvanize’s energy transition-focused public equities fund, Galvanize Global Equities.
Meanwhile, Simpson indicates that future catalytic climate finance efforts may focus on harder-to-abate sectors. She points to emerging breakthroughs in geothermal and fusion energy, noting that artificial intelligence holds promise for climate modeling and resource optimization. The foundation is even exploring climate litigation funding as a potential investment area.
However, Simpson stresses that the foundation’s strategy is just one approach. She hopes other foundations and family offices will draw from it “permission to start, even amid uncertainty” and recognize that foundations with flexible asset pools can move quickly to bridge climate finance gaps. The foundation’s board has committed to staying true to its values despite pullback in climate commitments elsewhere, according to Simpson.
The foundation plans to continue sharing progress and challenges openly as it refines its catalytic climate finance approach. Details about specific timeline targets or future allocation adjustments have not been confirmed.
