Member Spotlight: Sierra Club Foundation
CFO Kevin McGahan on Shifting Trillions, Insurance, & Catalyzing Climate Solutions
Finance has always shaped the world. Kevin McGahan is making sure it shapes a greener one. As CFO of the Sierra Club Foundation, he’s focused on shifting capital away from fossil fuels and into climate solutions through the organization’s Shifting Trillions initiative. We sat down with Kevin to discuss the power of finance in tackling the climate crisis, the role of insurance, and why the Sierra Club Foundation joined Premiums for the Planet.
We’re also thrilled that Kevin is joining us for a virtual event, "Unlocking Insurance as a Hidden Climate Lever," on April 16, where he’ll share deeper insights into climate finance and how we can drive change within the insurance sector. Read more about it below or register here.
Premiums for the Planet: The Sierra Club Foundation has long been a leader in funding environmental initiatives. Can you share a project that exemplifies your mission?
Kevin McGahan: The Sierra Club Foundation supports efforts to address the three existential crises facing humanity: the climate crisis, the extinction crisis, and our disconnect from nature. In addition to being a grantmaker, SCF strives to align its investment portfolios with our mission. We’re really excited about our catalytic capital portfolio investments, in particular the ones we’ve made in partnership with Indigenous communities. Navajo Power is aiming to provide socially equitable, utility-scale renewable solar energy to Native communities, as well as economic development through co-ownership and job creation. The SAGE/Standing Rock investment is designed with a goal of achieving majority ownership in wind assets developed on Standing Rock’s tribal lands. This will enable the Tribe to receive both environmental and economic benefits from utility-scale renewable energy projects.
PFP: You’ve had a distinguished career in financial leadership. What drew you to the Sierra Club Foundation and climate-focused finance?
KM: I spent the previous six-plus years of my career working at the Energy Foundation with offices in San Francisco and Beijing. EF had a very similar focus, so moving on to Sierra Club Foundation was a natural transition. When I thought about areas where my work can have the greatest impact, I kept coming back to climate. There are clear opportunities in the current moment to take meaningful steps to address both climate solutions and climate justice that need to be acted on now before it’s too late.
PFP: The Sierra Club Foundation recently became a member of Premiums for the Planet. What excites you most about this partnership?
KM: The work that Premiums for the Planet is doing to work with the insurance industry to get premiums invested sustainably has great synergy with the Foundation’s Shifting Trillions initiative. Shifting Trillions strives to catalyze the shift of trillions of dollars to restore our climate and natural places, reduce inequalities, and generate long-term value for asset owners, communities, and ecosystems.
PFP: As a leader in climate finance, how do you see the insurance industry playing a role in the transition to a clean economy?
KM: Climate change and insurance are intertwined. It’s certainly in the industry’s best interests to do everything they can to mitigate the frequency and severity of catastrophic climate events. Recent disasters like the L.A. fires took a terrible toll on that community. Insurers are looking at pulling their coverage in certain parts of the country due to environmental factors, and that is highly problematic. The industry has the opportunity to be a big part of the solution.
PFP: The ‘Shifting Trillions’ movement calls for redirecting massive amounts of capital from fossil fuels to climate solutions. With insurers managing nearly $7 trillion annually, how could shifting this capital accelerate climate action?
KM: The insurance industry has to acknowledge that climate change is the biggest financial risk it is facing. Extreme weather events and rising sea levels are leading to more frequent and costly property damage, putting pressure on insurers' financial stability and leading to rising premiums or even uninsurability in certain areas.
PFP: What role does philanthropy play in the future of climate finance?
KM: Charitable institutions are able to take on more risk when it comes to investing in the necessary shift away from fossil fuels to renewable and sustainable sources of energy. They are able to prioritize programmatic impact ahead of short-term financial returns when it comes to catalytic capital investments. Traditional investors are more locked in to financial returns as their sole focus.
PFP: Other than insurance, If you could challenge one financial institution, sector, or leader to take a bold climate action today, who or what would it be?
KM: I would challenge pension and other retirement fund trustees. In the U.S., there are trillions of dollars in pension funds that must support the long-term interests of public workers and retirees. But these funds continue to pour billions into fossil fuels and don’t hold corporate polluters accountable. Sierra Club Foundation and Sierra Club are working nationwide to get public pensions to demonstrate climate leadership through their investments and corporate engagement—including with the big Wall Street firms that serve them.
PFP: Looking ahead, what gives you the most hope about the future of climate finance?
KM: Climate finance will be diminished, but it isn’t dead. Nearly 80% of America’s operational clean power capacity is located in GOP congressional districts, and 85% of newly commissioned clean energy manufacturing projects were in states that went for Trump in 2024. Those parts of the country already have deep investments in climate finance that are continuing to thrive and grow, and they have seen the clear benefits of making the shift.