Financial Markets and the Transition to a Low-Carbon Economy: Challenging the Dominant Logics

Financial markets play a major role in contributing to the transition to a low-carbon economy. Although many initiatives and developments are taking place, this is just the beginning. In this article, we argue for a theory of change—a theory rooted in logics that will help financial markets play a key role in the transition to a low-carbon economy. We argue that the current dominant logics in finance—short-termism, predictability of the future based on ex-post data, price efficiency, and risk-adjusted returns—impede the effective integration of climate considerations in financial markets. We suggest four alternative logics that can enable and foster a change toward the low-carbon economy: long-termism, systems interconnectedness, carbon price dynamics, and active ownership.

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Climate Information in Retail Investors’ Decision-Making: Evidence From a Choice Experiment

Organization & Environment ◽

10.1177/1086026618771669 ◽

2018 ◽

Vol 32 (1) ◽

pp. 62-82 ◽

Cited By ~ 4

Author(s):

Alexander Bassen ◽

Katrin Gödker ◽

Florian Lüdeke-Freund ◽

Josua Oll

Keyword(s):

Financial Markets ◽

Choice Experiment ◽

Decisive Role ◽

Decision Makers ◽

Low Carbon ◽

Climate Information ◽

Low Carbon Economy ◽

Retail Investors ◽

Carbon Economy

Financial markets play a decisive role in the transition to a low-carbon economy. This study investigates the role of climate information presentation for climate-friendly investing among retail investors. We conduct a choice experiment in which we vary the presentation format of climate information by means of three label designs to test their influence on investment practices. We provide empirical evidence for the effectiveness of climate labeling as a potential nudge for climate-friendly investing. Furthermore, we find heterogeneity in the influence of climate information across different label designs and cognitive characteristics of investors. Intuitive (reflective) decision makers tend to place significantly more (less) weight on funds’ climate performance compared with financial performance—irrespective of a participant’s environmental preference.

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Theory of change for the mineral Exploration - INFACT project

10.5194/egusphere-egu2020-18416 ◽

2020 ◽

Author(s):

Cathryn MacCallum ◽

Jon Russill ◽

Moritz Kirsch ◽

Leila Ajjabou ◽

Insiya Salam ◽

...

Keyword(s):

Quantitative Research ◽

Raw Materials ◽

Mineral Exploration ◽

New Technology ◽

Good Practice ◽

Mining Industry ◽

Theory Of Change ◽

Low Carbon ◽

Low Carbon Economy ◽

Carbon Economy

The INFACT project aims to reinvigorate mineral exploration in Europe by engaging society and using new technology and research to improve mineral exploration practice. The consortium is formed of geo- and social scientists working together to achieve a new vision of mineral exploration. As a key part of INFACT, expert stakeholders from across Europe and other jurisdictions such as Australia and Canada have been engaged in a series of online and face to face discussions to determine and address identified challenges to exploration and a way to overcome them.&#160;Five key environmental and social challenges and barriers to exploration in Europe have been determined by INFACT through a mix of qualitative and quantitative research. These were (i) existing land use, (ii) the cost of mineral exploration, (iii) public perceptions and negative attitudes toward the exploration and mining industry, (iv) sustainability and the environment, and (v) governance and regulatory structures and processes.&#160;Through a series of workshops and interviews, discussing ways to address these challenges and barriers, a vision for mineral exploration and mining in Europe was created:<ul><li>Mining in Europe should contribute to local and regional sustainable development, enabling a low carbon economy through environmentally and socially acceptable extraction of critical raw materials(CRM). This will involve:</li> <li>The European Commission developing and enforcing rigorous and binding legislation with respect to all mineral exploration activities;</li> <li>Increased investment contribution for exploration of CRM within Europe;</li> <li>Exploration companies being required to adopt environmental and socially acceptable good practice;</li> <li>Increased awareness of the importance of mining to support a low carbon economy and improved public trust in the process;</li> <li>Creation of socio-economic shared value through adoption of multi-stakeholder collaborative planning and visioning; and</li> <li>Exploration companies achieving and maintaining a Social Licence to Operate;</li> </ul>The work presented will determine a way to ensure socio-environmentally sustainable supply of raw materials and the key steps required to achieve this vision.&#160;

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