How private sector collaboration can transform the humanitarian response
As disasters become more complex, the need for coordinated, scalable humanitarian response solutions has never been more urgent. Image: Reuters/Shafiek Tassiem
- Disasters are growing in frequency and complexity and the private sector's role in addressing global humanitarian challenges is increasingly vital.
- The Logistics Emergency Team and the Private Sector Humanitarian Alliance highlight how the private sector can support disaster response efforts.
- As disasters become more complex, the need for coordinated, scalable humanitarian response solutions has never been more urgent.
As disasters grow in frequency and complexity, the private sector’s role in addressing global humanitarian challenges proves increasingly vital.
Partnerships like the Logistics Emergency Team (LET) and the newly emerging Private Sector Humanitarian Alliance (PSHA) illustrate the transformative impact businesses can have by leveraging their expertise and resources to support disaster response efforts.
The LET, established in 2005, brings together UPS, DP World, Agility and Maersk to support the UN’s World Food Programme (WFP) in ensuring life-saving supplies reach communities in need.
Building on this foundation, the PSHA brings together various private and public sector actors, revolutionizing how companies collaborate and contribute to global crisis relief efforts.
Why does this matter now? The humanitarian sector is facing unprecedented challenges, including:
- Severe funding shortages: In 2023, UN global appeals were funded at only 52%, down from an average of 58% between 2016 and 2022. This drop was caused by rising costs, economic issues, and increased needs.
- Increased number of forcibly displaced people worldwide: We are witnessing a historic high in the number of forcibly displaced people. Conflicts, climate change and economic instability are pushing millions from their homes. The sheer scale of displacement requires coordinated, scalable solutions that the private sector is uniquely positioned to provide. Businesses can offer expertise in supply chain management, job training, employment and more to support humanitarian efforts in ways that traditional actors cannot achieve alone.
- Fragmented engagement: Despite the growing involvement of businesses in humanitarian work, much of it remains uncoordinated and ad hoc. Siloed relationships between companies and humanitarian organizations hinder scalable, timely responses. There is a pressing need for more strategic, collaborative partnerships that can harness the full potential of the private sector’s resources and capabilities. By aligning their efforts with global humanitarian priorities, businesses can ensure that their contributions are both impactful and sustainable.
The private sector remains one of the most critical yet underrecognized actors funding humanitarian crisis response. Highlighted during September’s United Nations’ (UN) Security Council meeting as a model partnership providing pro bono logistical support during large-scale emergencies, LET’s efforts in 2024, including critical responses in Gaza and Lebanon, exemplify the impact of such collaborations.
For example, LET partners leveraged their global warehouse networks to support the Gaza and Lebanon responses. Both UPS and Maersk swiftly set up and staffed warehouses to manage the influx of donations, ensuring that aid was efficiently received, sorted and distributed where it was needed most.
In Gaza, when fuel shortages became a critical bottleneck for humanitarian operations, Agility mobilized its subsidiaries to donate and strategically position fuel supplies. This enabled humanitarian organizations to continue their vital work without disruption, ensuring that lifesaving aid reached affected communities.
These examples highlight how private sector capabilities can address logistical challenges and enhance the effectiveness of humanitarian responses.
How the PSHA is transforming crisis response
The PSHA aims to establish a formal coordinating mechanism for businesses during crises, offering a structured entry point for corporate involvement.
How is the World Economic Forum helping to improve humanitarian assistance?
By leveraging the existing response infrastructure of public sector and nongovernmental organization (NGO) partners, the PSHA enhances private sector engagement, streamlines communication and prevents duplication of efforts.
PSHA’s strengths include:
- Streamlined processes: Coordinated private sector contributions that align with global response strategies.
- Standardized solutions: Development of scalable methods for crisis engagement within the private sector.
- Technological innovation: A centralized platform offering critical information and guidance for businesses during humanitarian crises.
UPS expertise supports humanitarian response
UPS’s long-standing partnership with the LET and the new partnership with the PSHA exemplifies the transformative power of public-private collaboration. By combining UPS’s logistical expertise with innovative coordination models, UPS is charting a new path to drive sustainable impact at scale.
- Core strength in logistics: UPS leans into its expertise in transportation and supply chain management, designing and executing solutions to complex challenges in humanitarian aid delivery.
- Sustainability leadership: UPS’s fleet of more than 18,300 alternative fuel vehicles and investments in innovative sustainable solutions position it to help create resilient, eco-friendly supply chains.
- Healthcare and cold chain capabilities: Building on its extensive experience in cold chain delivery and customs clearance, UPS helps overcome critical challenges in delivering life-saving medical supplies.
By mobilizing these capabilities, UPS maximizes its contributions to the LET network, leveraging employee volunteer hours to create a lasting impact.
In 2024, UPS played a pivotal role in the LET’s responses by participating in weekly partner meetings to identify and address bottlenecks for the Logistics Cluster, and providing critical assets and expertise to support smaller humanitarian response organizations.
For example, after inquiring about their needs, UPS employees provided various humanitarian organizations guidance on sourcing, warehousing and cross-border documentation. UPS also offered customs advice for goods transiting through Egypt for Gaza.
Expanding the vision by building on unique strengths
The PSHA emphasizes that every business has a unique “superpower” – an industry-specific capability that can address humanitarian challenges.
Contributions are not limited to logistics providers like the LET members. Companies across industries – from technology and telecommunications to healthcare, consumer goods and finance – have the potential to make significant contributions.
This vision promotes a collaborative model, integrating diverse private sector actors into the global humanitarian architecture. Expanding successful models like the LET into broader frameworks ensures more coordinated, effective disaster responses.
How the private sector can help transform the humanitarian response
The LET and PSHA demonstrate the power of private sector collaboration in reshaping humanitarian response. Together, they call on businesses across all industries to join this transformative effort.
By uniting capabilities and expertise with public and nonprofit organizations, the PSHA envisions a humanitarian system where businesses have a formal seat at the table. This modernized approach fosters collaboration, innovation and efficiency, making a meaningful, measurable difference in crisis response.
As disasters become more complex, the need for coordinated, scalable solutions has never been more urgent. Now is the time for businesses to align their strengths, step up and help build a more resilient future for all.
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Gilles Moëc
February 10, 2025