Who is Jeremy Grantham?

In a world where wealth often serves as a barrier between those who have and those who need, Jeremy Grantham stands out as a beacon of what it means to be an ideal philanthropist. Best known as the co-founder of GMO, an influential global investment management firm, Grantham has spent decades not only shaping the financial markets but also dedicating his resources to combating climate change and advancing scientific knowledge. His journey from a young economist at Royal Dutch Shell to becoming one of the most significant benefactors of environmental causes is a testament to his foresight, generosity, and unwavering commitment to leaving the world better than he found it.

Early Life and Career

Born in 1938 in Ware, Hertfordshire, England, Jeremy Grantham began his career in finance with a degree in economics from the University of Sheffield. He later earned an MBA from Harvard Business School, which set the stage for his future in investment management. Grantham’s career in finance took off when he co-founded Batterymarch Financial Management in 1969, where he became an early advocate for commercial indexing—a strategy that would later become a cornerstone of modern investment practices.

In 1977, Grantham co-founded GMO, where he currently serves as the Long-Term Investment Strategist and is a key member of the firm’s Asset Allocation team. His role at GMO has been instrumental in guiding the firm’s strategy, particularly through his emphasis on identifying and avoiding market bubbles, which has earned him a reputation as one of the most prescient investors in the industry.

Philanthropy: A Legacy of Giving

Jeremy Grantham emphasized that the phrase “It’s too late” is often misused in discussions about environmental issues. “It’s too late for the dodo and for those who have already starved, but it’s not too late to prevent an even bigger crisis. The sooner we act on the environment, the better,” he stated. Grantham’s philanthropy is not merely an extension of his financial success but a core aspect of his identity. In 1997, he and his wife, Hannelore, co-founded the Grantham Foundation for the Protection of the Environment to address the urgent challenges of climate change and environmental degradation. Today, the Foundation is one of the most prominent private funders of environmental research and advocacy worldwide.

For the first 22 years of the Foundation’s existence, Grantham, alongside Ramsay Ravenel, the Foundation’s President and Chief Investment Officer, focused primarily on grant-making, dedicating 90% of their efforts to it and only 10% to investing. However, as the Foundation matured and they built a robust team, Grantham and Ravenel shifted their focus to drive the Foundation’s mission more aggressively through strategic investments. As Grantham put it, “the best example we could set and the most use we could be was to drive our mission much harder with our foundation.” This strategic shift resulted in a current allocation of 75% towards investing and 25% towards grant-making, emphasizing the importance of scaling their impact quickly through targeted investments.

The Foundation’s enhanced investment strategy is focused on four distinct areas, with the goal of eventually allocating 25% of the Foundation’s capital to each. This structured approach allows the Foundation to diversify its impact while maintaining a strong commitment to its core mission of environmental protection.

One of the most striking aspects of Grantham’s philanthropic work is his deep commitment to academic institutions. His donations have had a transformative impact on some of the world’s leading universities, helping to advance research in climate science and policy. The Grantham Foundation has made substantial contributions to the Grantham Institute for Climate Change at Imperial College London and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics. These institutions are at the forefront of climate research, producing cutting-edge studies that influence global policy and drive action against climate change.

The Crucial Role of Academic Research

The academic research funded by Grantham’s philanthropy is crucial for a better future. Climate change presents a complex and multifaceted challenge that requires rigorous scientific investigation to understand and address effectively. By supporting leading academic institutions, Grantham is enabling the development of knowledge that forms the backbone of global efforts to combat climate change.

Research institutions like the Grantham Institute for Climate Change at Imperial College London and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics are not only producing essential data on climate trends but are also pioneering new approaches to mitigation and adaptation. This research helps shape international climate policy, informs public debate, and drives technological innovation.

For example, the Grantham Institutes are involved in critical studies that explore the impacts of climate change on various ecosystems, the economic implications of environmental degradation, and the development of sustainable energy solutions. These research outputs are instrumental in guiding policy decisions at the highest levels, including the United Nations and the Intergovernmental Panel on Climate Change (IPCC).

Moreover, by funding academic research, Grantham is helping to train the next generation of climate scientists, economists, and policymakers. These individuals will be the ones to carry forward the work of addressing climate change, equipped with the knowledge and skills developed through the research supported by Grantham’s philanthropy.

Grantham’s belief in the power of education and research is reflected in his approach to philanthropy, which is not about providing short-term relief but about investing in long-term solutions. The impact of the academic research he funds extends far beyond the immediate findings; it contributes to a growing body of knowledge that will continue to inform and influence global efforts to tackle climate change for decades to come.

Investing in a Green Future

According to various online articles, at the COP26 climate summit in Glasgow, Scotland, over 450 firms controlling $130 trillion—nearly 40% of the world’s financial assets—committed to achieving net-zero carbon emissions by midcentury, with interim targets set for 2030. This global commitment to sustainability presents immense opportunities, and Grantham is making strategic long-term bets to capitalize on these green investment trends. By 2021, venture capital and private investments made up more than three-quarters of the $1.4 billion in assets managed across his foundation, charitable trust, and personal holdings.

The Grantham Foundation, valued at $1.5 billion, serves as Grantham’s vehicle for seeking out and supporting the “heroic new ideas” required to tackle the immense challenges posed by climate change. Grantham believes that the U.S. venture capital industry is well-positioned to drive these innovations, noting that venture capital is one of the few aspects of American capitalism that is “actually doing a useful job.” He contrasts this with the broader landscape of American capitalism, which he describes as “fat and happy” and geared towards enriching a select few.

A significant portion of Grantham’s portfolio is dedicated to green ventures, with half of it invested in climate-focused startups. Grantham and his team have deployed $74 million into 34 startups, which they classify as “neglected climate opportunities.” These investments are guided by a philosophy that prioritizes ideas with the potential to fundamentally change the world. “We only pick ideas that seem extremely important, ideas that have the potential to change the world,” Grantham asserts.

His strategic approach has yielded impressive returns, with his venture-capital portfolio achieving an annual return of 19% over the past decade, including a remarkable 102% gain in 2020. This important year was particularly boosted by QuantumScape, a company developing a new type of battery, which went public. This success underscores Grantham’s ability to identify and support groundbreaking technologies that are essential for a sustainable future.

The Grantham Foundation and Beyond

The Grantham Foundation is deeply committed to public charity and environmental protection. Governed by five members of the Grantham family, the Foundation reflects their strong personal dedication to these causes. This commitment extends to the Jeremy and Hannelore Grantham Environmental Trust, a public charity that supports efforts to reduce and reverse global environmental degradation. The Trust is overseen by independent trustees, who are leaders of major environmental organizations such as Rare, The Nature Conservancy, World Wildlife Fund US, and the Rocky Mountain Institute.

Grantham is also deeply aware that the actions necessary to avert catastrophic climate change will be impossible without widespread public support. For him, effectively communicating the risks associated with climate change and environmental degradation, as well as the urgency of addressing these risks, is paramount. “Communicating the risks from climate change and environmental degradation, and the urgency of counteracting those risks, is our top priority,” Grantham has emphasized. He recognizes that the challenges are vast, and the resources available through environmental philanthropy are limited. To maximize the impact of these resources, Grantham advocates for the formation of alliances between like-minded groups and individuals, believing that only through collaboration can the world marshal the resources and influence necessary to drive meaningful change.

Recognitions and Honors

Jeremy Grantham’s contributions to finance and environmental advocacy have not gone unnoticed. In 2015, he was elected as a member of the American Academy of Arts and Sciences, a recognition of his impact across multiple fields. The following year, he was appointed Commander of the Order of the British Empire (CBE) for his services to climate change and environmental causes. In 2017, Grantham and his wife were jointly awarded the Carnegie Medal for Philanthropy, honoring their leadership in climate change activities and their dedication to global sustainability.

These accolades are a reflection of Grantham’s unique ability to merge his financial expertise with his passion for environmental preservation. His influence extends beyond the boardroom and into the broader public sphere, where he has become a vocal advocate for immediate and decisive action on climate change.

A Model Philanthropist

Jeremy Grantham embodies the ideal of the philanthropist who uses his wealth not merely to give back, but to effect meaningful change. His extensive donations to universities and other institutions underscore his belief in the power of education and research to drive progress. By funding cutting-edge climate research and fostering collaboration across disciplines, Grantham is helping to build the foundation for a more sustainable future. His philanthropy is not about making headlines or seeking recognition; it is about Jeremy Grantham embodies the ideal of the philanthropist who uses his wealth not merely to give back but to effect meaningful, lasting change. His extensive donations to universities and other institutions underscore his belief in the power of education and research to drive progress. By funding cutting-edge climate research and fostering collaboration across disciplines, Grantham is helping to build the foundation for a more sustainable future. His philanthropy is not about making headlines or seeking recognition; it is about creating a tangible impact on the world’s most pressing issues.

Grantham’s approach to philanthropy is rooted in a deep understanding of the systemic challenges posed by climate change. He recognizes that addressing these challenges requires a multifaceted strategy—one that includes supporting scientific research, investing in innovative technologies, and advocating for policy changes. The academic research he funds plays a crucial role in advancing our understanding of climate change and developing solutions that can be implemented on a global scale. By empowering institutions like the Grantham Institute for Climate Change at Imperial College London and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics, Grantham is ensuring that the brightest minds are equipped to tackle the environmental challenges of our time.

Furthermore, Grantham’s strategic investments in green technologies demonstrate his commitment to driving change beyond academia. By supporting startups and ventures focused on sustainable solutions, he is helping to accelerate the transition to a low-carbon economy. His investments are not just about financial returns; they are about fostering innovations that have the potential to reshape industries and reduce humanity’s impact on the planet.

In a world where many philanthropists focus on short-term gains or public recognition, Jeremy Grantham stands out as a model of what it means to be a forward-thinking, impact-driven donor. His contributions to finance and environmental advocacy demonstrate that with the right combination of expertise, foresight, and commitment, we can create a sustainable future for generations to come. Grantham’s legacy will not only be measured by the wealth he has accumulated but by the enduring positive impact he has made on the world—a legacy of leadership, vision, and a relentless pursuit of a better, more sustainable future. In doing so, Grantham has set a standard for what it means to be a philanthropist in the 21st century—one who not only responds to the challenges of today but also invests in the solutions of tomorrow.