H&M Foundation and Mercy Corps have launched an initiative linking early-warning systems to remittances before climate disasters strike, with co-funding from Adyen.
Backed by USD $442,760, the programme will test whether alerts tied to forecast risks such as drought or flooding can prompt people in the US to send money earlier to relatives in Guatemala and Colombia.
The effort targets a longstanding gap in disaster response. Many crises can be forecast in advance, but little aid is released before an emergency begins. The project will examine whether existing remittance channels can provide practical early household support, rather than relying only on traditional humanitarian disbursements after losses have already occurred.
Under the model, remittance senders would receive a notification when early-warning systems detect an approaching climate threat. They would then be encouraged to transfer funds immediately, giving families more time to buy supplies, protect homes, move livestock or prepare to leave affected areas.
The initiative will reach as many as 400,000 remittance senders in the US with family connections in the two Latin American countries. Mercy Corps is also combining the financial test with climate adaptation work in local communities to help households act on warnings once funds are received.
The project is part of a broader push to shift disaster management from response to prevention. Climate-related shocks are becoming more frequent and severe, increasing pressure on households and aid systems. The organisations involved pointed to evidence that support delivered before a crisis can reduce food insecurity and limit the need for harmful coping measures.
They also said spending on disaster mitigation can significantly reduce later losses. The argument has gained traction across humanitarian and development agencies as pressure grows on limited aid budgets and governments seek more cost-effective ways to prepare for climate risk.
Testing behaviour
A central part of the work will be measuring whether linking forecasts to remittances changes financial behaviour. Mercy Corps plans to assess whether households receiving money earlier are better prepared and suffer fewer losses, and to identify the conditions under which the approach could be applied in other markets.
Part of the funding will support exploration of expansion beyond Guatemala and Colombia. The initiative also includes engagement with governments and institutions to help integrate anticipatory approaches into disaster-planning frameworks.
The model reflects an attempt to draw more private capital into an area that has traditionally depended on aid budgets and emergency appeals. Adyen said its role in the partnership is tied to using its position in financial infrastructure to support earlier action, alongside philanthropic funding from H&M Foundation.
Private funding
The structure is being presented as a shared funding model intended to show that private-sector finance can support disaster preparedness through systems already widely used by migrant families. Remittances are a significant source of household income in many climate-vulnerable countries, and the project is designed to test whether they can also become a vehicle for anticipatory action.
Alma Bezares Calderon outlined the household impact Mercy Corps expects to study through the programme.
"Acting before disaster strikes can make all the difference for families facing climate shocks. When people receive support early, they have more choices, more control, and a better chance to protect what matters most. Early cash assistance helps families buy food, water, and medicine, strengthen their homes, move livestock to safety, or evacuate before conditions worsen. Getting support to families sooner saves lives, reduces the need for larger humanitarian responses later, and helps people prepare with dignity and resilience," said Alma Bezares Calderon, Senior Researcher, Mercy Corps.
Kristina Svartling said the project is intended to test whether timing, rather than prediction alone, is the missing link in climate preparedness.
"The question isn't whether disasters can be predicted, but whether we act in time. If we can move money earlier, we can change outcomes, not just respond to them. That way we can help communities prepare and protect what matters most," said Svartling.
Adyen framed the collaboration as a way to use private-sector networks to support a broader funding effect in disaster preparedness.
"This partnership is an example of a new way of enabling impact throughout our broader network, showing how private-sector capital and global financial infrastructure can be leveraged to create a 'multiplier effect' for good," said Morgan De Santo, Global Impact Programs Manager, Adyen. "By focusing greater effort on what can be done before a crisis occurs, we can ensure resources are mobilized for preparation, not just response, helping organizations such as Mercy Corps focus on ensuring aid goes further and where it is most needed."