For some time, the financial services industry has recognized its role in addressing climate change. Consequently, firms worldwide have sought to secure funding and establish robust ESG regulations swiftly. However, in the rush to achieve compliance and sustainability, ethical considerations can sometimes be overlooked.
A primary influence on corporate decision-making has always been both internally and externally sourced scientific research and advisory. In a recent FinextraTV Unplugged interview, Lisa Graumlich, president of AGU, emphasized the importance of conducting research grounded in ethical principles. She stated, “The research must be inclusive and representative, carefully weighing both risks and benefits while considering trade-offs.”
Some may wonder how research could be considered unethical when it targets climate intervention. The assumption might be that well-researched initiatives naturally warrant investment. However, as Graumlich pointed out, a research project must be shaped by the communities it impacts: “Funders should ensure that there is adequate public participation in the research, including assessments by communities affected by the technologies, which can have both local and global consequences.”
As the urgency for climate intervention continues to grow, it is crucial to carefully assess its impacts, particularly on local communities with limited resources. Emerging technologies, while powerful, necessitate a thoughtful approach. Graumlich noted, “Researchers should include not only scientists and engineers but also social scientists and ethicists. This collaboration can help integrate concepts of justice and fairness into how we address these significant issues with potential unintended outcomes.”
The importance of diversity, inclusive science, and ethics is also a recurring theme in AGU’s discussions on earth sciences. Graumlich highlighted the potential repercussions of neglecting ethical guidelines, stating, “Without these guidelines, there’s a risk that research could either be banned or proceed without adequate consultation and protective measures, leading to financial risks for funders and far-reaching societal impacts.”
Large-scale climate intervention often serves as an alternative to reducing carbon emissions but brings its own set of challenges. Such projects—frequently categorized as geoengineering—can create complications for various local communities. Graumlich believes in improving the world without adversely affecting individuals, highlighting that the dialogue on ethical guidelines must persist. Given an increasingly contentious political environment, the success of implementing ethical frameworks remains uncertain, raising the question: if these frameworks are not established, what will be the repercussions?