Systems transformation through finance with Ceres, Ep #31

Nov 29, 2022

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If you look at climate change as a systems problem (which it is), it doesn’t take long to see the important role of finance. Yes, there’s phenomenal growth in ESG investing, alongside funding in clean energy and climate tech. However, overall, our financial system has failed to factor in climate risks and climate impacts. According to the climate disclosure nonprofit CDP, just 1% of companies provide the information that investors need for assessing if they have credible plans for mitigating risks and transitioning to a low-carbon future. Large greenhouse gas emitters have easy access to capital, yet companies are incentivized to adopt a short-term view, prioritizing quarterly earnings over long-term considerations like the health and safety of their employees, customers, and communities.

So what can be done about this? Not many people have the expertise or network to think about transforming finance. That’s where an ambitious organization called Ceres comes in. Ceres works with large investors and corporate boards to create systemic change.

In this episode, we hear from two members of the Ceres Accelerator for Sustainable Capital Markets about the work they’re doing to reshape the role of finance in climate change. Steven Rothstein is the Managing Director and brings decades of experience to this question, and Yamika Ketu is a Senior Associate who recently authored a report that looks at the climate lobbying of S&P 100 companies.

Tune in to hear about Ceres’ history and growth, the expected SEC rule change that could have dramatic impacts, findings from their recent research, and of course, ways that you can get involved. Here we go.

In today’s episode, we cover:

[3:58] What is Ceres & how it got started
[5:24] The scoop on the Ceres Accelerator for Sustainable Capital Markets
[6:53] Yamika’s role & what she’s aiming to do
[7:45] Why there’s a need to invest in changing capital markets
[10:16] The SEC rule change that would require companies to disclose climate risks
[12:39] Public comments & sentiments around the proposed SEC rule change
[15:08] Pressure for organizational change
[16:38] The resistance & take-off in changing capital markets
[19:13] Ceres’ recent analysis & report on the lobbying activities of S&P 100 companies
[22:03] What sustainability leaders can do to ensure their work isn't being undone by partner associations
[25:15] What Steven sees as a home run for accelerating change
[26:49] Events that are changing the system in a dramatic & rapid way
[29:35] What investors & participants in today's financial system can do
[31:02] Addressing greenwashing through another proposed SEC rule
[32:09] Companies that stand out based on their level of commitment & action
[34:08] Other work that Ceres is doing & ways for listeners to get involved

Resources Mentioned

Connect with Steven Rothstein & Yamika Ketu

Connect with Steven on LinkedIn
Connect with Yamika on LinkedIn

Connect With Jason Rissman

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