Now, Wall Street is stepping out of its traditional talent pool of economic brilliance to pay weather scientists millions. This can be confusing. Could it be that Wall Street is transforming?
It’s a trend that’s emerged in recent years, but alas, it’s not driven by a sudden “environmental protection” mindset among bank bosses or private equity executives. Investment firms know that having better insight and being more prepared for the future is invaluable, and one of the keys is to “keep up with current events.” The environmental crisis is a major event on everyone’s radar these days.
For example, a few days ago, the news broadcast that the temperature in the Arctic soared to more than 30 degrees, and the editor who watched it had to sweat for those polar animals. This topic has also aroused heated discussions in various parties. I don’t know how many times the global warming incident has been rushed to the forefront, and everyone is worried about the future development of the earth. As a result, investment firms are willing to spend big to attract a wide range of experts to acquire their environmental expertise, help deliver on key commitments to combat the climate crisis, and examine investment climate risks.
JPMorgan, BlackRock, Morgan Stanley and Wells Fargo have all pledged to add environmental venture capital to their loan and investment portfolios to help cut pollution. To do this, they need expertise in carbon accounting to measure and track their progress; companies also need to build internal climate models to assess risks such as natural disasters, deforestation, and the transition from fossil fuels to more renewable energy. , and then incorporate it into investment decisions.
So are the efforts of financial firms really having an impact on the climate crisis? Some in the industry have ruthlessly slammed such environmental ventures as useless and arguably a waste of talent; but some experts, such as William Boos, an associate professor in the Department of Earth and Planetary Sciences at the University of California, Berkeley, are encouraged by the hiring of climate experts by these financial firms. He believes that it is a good thing that environmental scientists have new career options that can positively impact the environment from a different perspective than before.
Sarah Kapnick holds a PhD in Atmospheric and Oceanic Sciences. She started her career as an investment banking analyst at Goldman Sachs almost 20 years ago. At the time, Kapnick said, the firm’s partners laughed at her interest in climate change and “advised” her to take her interest in climate as a hobby and do well as a banker. She was recently named chief scientist for the National Oceanic and Atmospheric Administration.
JPMorgan Chase hired Ben Ratner as executive director of sustainability in January after nearly a decade at the Environment Defense Fund. Ratner said he and his colleagues talk to investors every day about balancing the energy crisis and tackling climate change. Root Chase hired Ben Ratner as executive director of sustainability in January after nearly a decade at the Environment Defense Fund. Ratner said he and his colleagues talk to investors every day about balancing the energy crisis and tackling climate change.
At first glance, the climate environment and the financial economy are indeed incompatible, but there are still many environmentalists who are paying close attention to the next steps of the industry. If we can really publicize and raise environmental awareness, as Professor William Boos said, to achieve great things, we must seize every opportunity and start small. It may also be a good choice for climate scientists and environmentalists to use expertise to influence and guide large companies to make more informed environmental decisions, ultimately protecting the environment and reducing pollution.
