Dear CEO, if you want to walk the talk in sustainability look at strategic philanthropy, not at EU regulations
- Dr. Giulia R. Tufaro
- 2 days ago
- 11 min read
On 16 December 2025, the European Parliament definitively approved the so-called ‘Omnibus I’ package, a hotly debated proposal to simplify European regulations on corporate sustainability. The package confirms a substantial downsizing of both the rules on sustainability reporting (CSRD) and corporate due diligence (CSDDD). The deregulation of sustainability reporting concerns the number of companies that will be affected by the new legislation, the sectors concerned and the scope of obligations throughout the supply chain (all drastically reduced). As for due diligence obligations, the deadlines for compliance with the legislation have been postponed, the obligations to implement climate transition plans have been removed, and the penalties have been reduced to ridiculous limits (maximum 3% of the global turnover of the company or group).
A step backwards in terms of what could have been achieved, as many have argued, not only as a political message. Because, we must admit, often in business hope for change cannot be placed solely in the foresight of leaders, but in regulatory compliance. From this point of view, for all working on and for sustainable transition, this deregulation is a defeat, which also carries with it a great contradiction, given the European commitment, confirmed on 5 November 2025, to reduce CO2 emissions by 90% by 2040 compared to 1990 levels. The commitment remains, but the tools to achieve it are being diluted and postponed.
So, how might business respond?
Likely, companies who were just beginning to address the issue of sustainability will feel justified in slowing down. But what about those who have already invested in the transition process, who have already initiated the internal cultural change process necessary to drive a sustainable transition? What about those companies that have demonstrated their true commitment to sustainability by making consistent and considerable investments?
These are the companies that invite us to look at the brighter side of this debate. First and foremost, these companies know that transparency requirements on non-financial impacts inevitably lead to going beyond mere compliance and managing real change. Reflecting on environmental, social and governance (ESG) impacts means carrying out a double materiality analysis, defining indicators that make sense for the company, and strengthening long-term governance to support the initiation of these changes.
Furthermore, these are companies that are well aware of the market beyond regulatory constraints: investors, banks, customers. These companies know that transparency on ESG criteria is a crucial factor in attracting capital, growing business, building internal and external reputation, attracting talent, political power and recognition – in their own sector or territory.
In other words, these are companies that put into practice, every day, the transition from a shareholder economy to a stakeholder economy. They know how to listen to the needs of stakeholders and make this an ingredient of strategic development and positioning in their ecosystem – local territory and communities, customers, suppliers, investors, institutions, partners, company and supply chain workers, and, of course, the nature. This kind of entrepreneurship is aware that the responsibility of the company – and its competitive advantage! – lies in the value it can generate for all, fully practicing the integration between business and strategic philanthropy.
Business and strategic philanthropy
Strategic philanthropy can help businesses pursue sustainable and fair transition. It brings benefits to all stakeholders, even in ways that are sometimes unprecedented in mainstream corporate cultures, drawing on the wealth of European philanthropic tradition - and not only. Some exceptional and well-known cases have gone far beyond “simple” philanthropic donations. Take the Canadian company Patagonia, for example: after dedicating 1% of its turnover to the planet for years, it now has a non-profit association as a single shareholder. Each year the company's profits, once reinvested internally, are redistributed in the form of dividends, contributing to the fight against the climate crisis. For a company that faces greater constraints in making this radical governance choice, taking a strategic approach to philanthropy means essentially operating in two ways:
becoming involved as a partner (with various degrees of involvement – from a venture capital partner to a truly operational partner);
setting up a corporate foundation (or family foundation, often originating from entrepreneurial families).
In the former case, the company can offer risk capital or support, also in the form of co-design, to projects with a high environmental or social impact. This can and does happen in partnership with institutions or third sector organizations (including foundations). In the latter case, companies can outsource their CSR functions by setting up a foundation themselves.
In both cases, a choice of strategic philanthropy means a great deal in terms of the effectiveness of the company’s sustainability objectives, the alignment with business objectives and the company reputation. Moreover, philanthropic interventions can be measured and reported consistently with the new European (de)regulation. The activities carried out by a significant philanthropic partnership or a corporate foundation will easily be represented among a company's material topics and - therefore - be reported through the European Sustainability Reporting Standards (ESRS, the reporting standards provided for by the CSRD).
The European philanthropy landscape
The European philanthropic landscape is extremely rich, both in terms of resources and variety. According to the latest Philea survey covering 34 European countries [1], there are an estimated 175,000 foundations in Europe, with an aggregate asset value of €516 billion and a total annual philanthropic capacity of €76 billion.
Among the countries considered in the analysis, Germany stands out in terms of the absolute number of active foundations (25,777), followed by Poland (21,000) and Sweden (17,631). The reasons for this are varied and tend to be found in the different national regulations. However, when looking at assets, Switzerland (€140 billion), the United Kingdom (€128.985 billion) and Germany (€55 billion) are the top three countries in terms of total assets.
Finally, in terms of annual philanthropic capacity (donations), Spain ranks first (€17,594 million), followed by France (€16,002 million) and the United Kingdom (€14,115 million), although all data should be treated with caution, as they are based on an analysis of databases that have different categorizations between countries.
The Italian philanthropy landscape
The Italian philanthropic context is unique in Europe because it includes 88 Foundations of Banking Origins (FOB), which have considerable capital assets (over €40 billion). They are an entirely unique phenomenon since they were established by law in 1990, following the reform of savings banks, which held a significant portion of the shares of credit institutions, increasingly reduced over time due to regulatory changes. They are rooted in the territory in which they operate and their governance bodies include a variety of representatives from public and financial institutions, third sector organizations and networks. They are also promoters of the country's largest community foundations.
In addition, the Italian philanthropic landscape includes family, corporate and community foundations, secular philanthropic organizations and other philanthropic entities, which have an annual philanthropic capacity of over 400 million (estimate related to the membership base of Assifero, the Italian association of foundations and philanthropic organizations). The number of foundations recorded by the Philea report for Italy (8,356) is not at all significant in comparative terms, because in the Italian context a hospital, a research centre, a social enterprise, as well as a philanthropic organization, can take the form of a “foundation”.
Corporate and Family Foundations
Corporate foundations are established by a company (or a group) to promote the social responsibility policies of the company or group itself. Either philanthropic arm of a company or extension of its ESG policies, a corporate foundation is a separate organization: this choice offers advantages not only in terms of reputation, but also in terms of organizational efficiency and, at least in theory, managerial autonomy. In practice, governance varies greatly, as does financial autonomy: it depends on the company's commitment, which can be very short-term, with consequences for the planning of long-term support for initiatives aimed at environmental and social impact. If we look at the ratio between company assets and corporate foundation endowments, it is easy to be disappointed. However, there is a growing opinion that corporate foundations can become strategic assets for companies, precisely because of their roots in the territory and their ability to attract qualified and motivated talent.
Family foundations are established by one or more family members in order to preserve and ensure the continuity of part of the family's assets, which may also be used for social and charitable purposes. These foundations also have a wide variety of assets and governance structures, depending on the arrangements and wishes of the family.
Even though the former are expressions of a corporate culture and the latter tend to give more importance to a family history, these two philanthropic entities are independent actors in the field of welfare, environmental protection, promotion of social innovation, human rights and cultural activism, with a high degree of freedom. They choose which philanthropic objectives they want to pursue and organize their activities accordingly. The approach to the activities can be grant-making (supporting grant-seeking organizations), operational (implementing projects directly in their own territory) or mixed (if they operate on both fronts). They tend to have very small assets but operate on the basis of annual endowments. Compared to Europe, the philanthropic approaches considered most innovative today in Italy – trust-based philanthropy, for example, or venture philanthropy – remain marginal.
The exact number of corporate and family foundations in Italy is unknown, as there is not a public database, established by law, that distinguishes foundations by type. While corporate foundations are estimated to be over 200 [2], the number of family foundations is unknown. Over the last 25 years, they have grown both in Italy and Europe thanks to favorable tax provisions, reduced bureaucratic barriers, greater recognition and visibility in the territories.
Selected cases of EU or Italian corporate philanthropy and partnerships
Fondazione Golinelli
The Golinelli Foundation was established in Bologna in 1988 by entrepreneur and philanthropist Marino Golinelli. Its grants and investments get to €7 million in 2023 [3]. Today, it is a fully operational philanthropic holding company that manages special-purpose companies, runs cultural centres, develops technological research platforms, coordinates the Marino Golinelli School of Ideas (a state-recognized secondary school), and actively participates in investment companies, consortia, innovation centres and other cultural entities. As stated on the Foundation's website, “it has created an integrated and structured ecosystem for culture and development that is unique in Italy” [4]. Its activities cover all cross-cutting areas where innovation is embedded in the socio-economic fabric: culture, education, training, but also research and technology transfer, start-up incubation and acceleration, venture capital and open innovation. Fondazione Golinelli collaborates with leading Italian public institutions and the most influential local, national and international academic, scientific and cultural partners.
Why it “makes a difference”: Golinelli Foundation is interesting for its ability to act as a catalyst for the entire ecosystem of education with a variety of solutions, from the school sector to business incubation and acceleration, consistently with the highly innovative and entrepreneurial spirit that characterizes the company values.
Philanthropy for Climate
Philanthropy for Climate is a global movement with currently 961 signatories committed to taking concrete action to combat climate change. As stated on the website, ‘all organisations with philanthropic resources, whatever their mission and field of expertise, can play a role in addressing this emergency. Foundations and other types of philanthropic organizations have an immense potential for positive climate impact when integrating climate considerations into their own operations and programmes as well as in the investment of their endowments' [5]. This is certainly a call to foundations, but also to anyone with a strategic approach to climate philanthropy, catalysing resources and commitment towards the movement's shared goals. These are: ensuring training and continuous learning on climate change; providing resources that are not emergency-based but targeted at the root causes of climate change; integrating climate change considerations into both the design and implementation of all funding programmes; relating climate change and asset management; minimizing climate impact in all operations; advocating – specifically towards businesses; acting transparently.
Why it “makes a difference”: Philanthropy for Climate is relevant for its ability to catalyze resources and commitments towards a very clear and shared goal, easy to be adopted by institutions and businesses, especially if consistent with the goal of a just and sustainable transition.
Robert Bosch Stiftung
Founded in 1964 by entrepreneur Robert Bosch and one of Europe's largest foundations, it bases its work on experimentation, such as trust-based philanthropy. The Foundation supports civil society actors, movements and activists who are typically not supported by traditional philanthropy, based on short-termism, a heavy attention on project support and financial reporting. Support is provided from the earliest stages (ideation) and is characterized by a high degree of flexibility, based on the needs of the organizations supported [6]. The case is also interesting from a governance perspective. Between 2018 and 2019, following a major review of its global grants, the Foundation launched a new portfolio of activities based on six thematic areas: climate change, democracy, inclusive societies, inequalities, migration and peace. The role and responsibilities of the board have also been redefined – from supervising single projects or programmes to focusing exclusively on strategic guidelines and approving annual budgets.
Why it “makes a difference”: Robert Bosch Foundation is interesting for the change in governance, which has also led to a change in its approach to funding: gradually moving away from traditional power asymmetries (donor-grantee) towards partnerships based on trust and core support for causes responding to complex challenges.
Takeaways for a virtuous interaction between strategic philanthropy and sustainable transition
At this moment in history, strategic philanthropy seems to play the role of catalyst for local energies, activating local ecosystems in alliance with businesses and institutions. Everything supported by strategic philanthropy feeds into a company's sustainability posture, which can find valuable allies in these entities for achieving its sustainability goals. Moreover, strategic philanthropy strengthens a company's knowledge and reputation, which in turn drives business opportunities, makes companies open to innovation and attracts qualified talent.
A good to-do list for a CEO leading a sustainable and fair transition today would be:
Know your territory and the active philanthropic initiatives
Listen to the needs of the territory and be able to identify the most impactful trends
Reflect deeply on the company’s material topics (through a double materiality analysis involving governance, staff and all relevant stakeholders)
Find how to “make a difference” in the local context, in full accordance with the company's values
Set up a philanthropic strategy consistent with business objectives (either a partnership or a foundation)
Integrate philanthropic and business metrics for continuous improvement in monitoring, evaluation and learning
Integrate philanthropic and business reporting following European standards (ESRS) or any other standards used (e.g. GRI)
Disseminate and cultivate the strategic philanthropy approach at all levels - internally, within the sector and throughout the supply chain.
While waiting for this challenging time for sustainability to run its course, companies with a strategic approach to philanthropy will benefit from a ‘double leap’ in business: increasing competitive advantage, attracting talent and recognition, acting as a driver of the sustainable transition. Strategic philanthropy practices, once run, are difficult to abandon, and excellent to be emulated.
REFERENCES
[1] Philea, 2025. The Fabric of Giving 2025: Public-Benefit Foundation Data in Europe.
[3] Vita Magazine, 2023. Fondazioni SPA.
AUTHOR:
Dr. Elisa Ricciuti, PhD is a lecturer, researcher, advisor and designer for sustainability. Recently, she has also become executive coach. She has founded DICE ∙ Impact & Philanthropy, which provides strategic consulting, training, and coaching to companies, foundations, social investors, and anyone committed to building more sustainable, fair, and inclusive futures.
She has a background in Management of Public Administrations and International Institutions (bachelor and MSc) and a PhD on Global Philanthropy for health and development. For her doctoral studies between London and the US, she has analyzed and compared the priority-setting process of the Gates Foundation, the Rockefeller Foundation and the Welcome Trust. Back to Italy in 2014, she has led the Nonprofit and Philanthropy group at SDA Bocconi School of Management, in Milan, before serving as Executive Director of a philanthropic start-up, the Cottino Social Impact Campus in Turin.
After three years of consulting companies and philanthropies, in October 2025 she has launched DICE ∙ Impact & Philanthropy, a hub of people who believe that a more sustainable, equitable, and just future is possible.
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