As the effects of climate change move from scientific predictions to daily headlines, some investors have begun sounding the alarm about impending dangers to financial markets. In this episode, experts break down the intersection of climate change and the economy, and examine whether the persuasive power of the dollar can be leveraged in the fight for climate action.
In early 2020, BlackRock CEO Larry Fink penned a letter laying out the long-term investment risks posed by climate change. It brought attention to the ways shifting consumer sentiment, regulation, and physical risk all could alter the playing field. But even as some pension fund managers and other investors with long time horizons are increasingly planning for climate change, much of Wall Street is continuing business as usual. What incentives and policies are needed before markets will unleash their power in the fight for climate action?