“The future of life on earth depends on our ability to take action.” David Attenborough
Abstract: This chapter examines the complex strategies for addressing climate change, starting with an analysis of three key datasets that reveal the rapid warming of the planet. It highlights global efforts such as the Principles for Responsible Investment (PRI) and the Sustainable Development Goals (SDGs), which are catalyzing worldwide movements towards sustainability. The discussion then shifts to how corporations are adapting their practices to meet these global standards through advanced Environmental, Social, and Governance (ESG) reporting, aiming to diminish their environmental impact and promote sustainability. These changes are propelled by regulatory requirements, increased shareholder activism, and the changing values of younger generations, especially Millennials, who demand ethical business operations. The chapter also explores the notion of materiality within financial contexts, emphasizing the growing recognition of environmental risks as critical financial factors. It discusses the U.S. Inflation Reduction Act of 2023, showcasing its impact on spawning a new generation of eco-focused enterprises and technological innovations. Furthermore, the chapter delves into the roles of Artificial Intelligence (AI) and Big Data in enhancing ESG reporting and how FinTech innovations like blockchain are transforming financial services by improving transparency and accountability in environmental efforts.
Key words: GHG, materiality, risks, SDG, ESG, Fintech, blockchain, IPCC, regulation, geospatial, energy
Chapter 1 - Organization of the book and topics