Lynn Forester de Rothschild Advocates for Financial Markets to Lead Climate Action

Lynn Forester de Rothschild, CEO of the Council for Inclusive Capitalism, has recently published a compelling op-ed emphasizing the critical role that financial markets can play in combating climate change. As global political uncertainties rise, Lynn argues that it is up to investors to spearhead the clean-energy transition and drive meaningful progress toward climate goals.

In her op-ed, Lynn outlines three strategic shifts that investors must embrace to contribute effectively to climate action while ensuring financial returns:

• Engagement Over Divestment: Lynn emphasizes that engaging with high-emitting companies and monitoring their progress can yield significant climate benefits, far surpassing the impact of simple divestment.
• Active Investment in Emissions Reductions: Rather than passively investing in low-carbon industries, investors should actively support sectors like renewable energy and waste management, which are pivotal to the clean-energy transition.
• Capitalizing on Market Opportunities: Despite weak national climate policies, Lynn highlights the unique opportunities for investors to drive sustainable change and generate returns, particularly in light of initiatives like the Inflation Reduction Act.

To explore Lynn Forester de Rothschild’s full insights on how financial markets can drive climate action, read her op-ed on Project Syndicate.

This op-ed reflects our ongoing commitment at the Council for Inclusive Capitalism to foster a more inclusive, sustainable, and trusted economic system. We believe that through strategic collaboration and responsible investment, we can meet the climate challenge head-on and create long-term value for all stakeholders.