How we get what we value

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Mark Carney’s fourth Reith Lecture, “How we get what we value”, focuses on the topic of climate change.

Carney said net zero carbon emissions is achievable if companies and finance can embed climate into all of their decisions.

Highlighting that the current pandemic have exposed the extent to which people undervalue resilience and are ignoring systematic risk, and said firms are starting to value sustainability .
Returning to his 2015 theme of the “tragedy of the horizon”, he notes the need to value the future to secure action now.

Companies increasingly have to “do the right thing” in order to remain viable, he notes a shift towards “value reflecting values”.

Carney describes how the three “Rs” can drive change through reporting, risk (properly assessing the risk of climate) and returns (there are huge opportunities in the transition).

Policymakers need to increase ambition, but he does not really identify how policy will drive the rapid transition, beyond setting a carbon price; the sense is that the 3Rs plus societal attitude shifts will not be sufficient for the rapid transition required.

Watch the lecture!