The Intertwined Fate of the Economy, Equity, and the Climate Crisis
Challenging the status quo and creating more equitable finance and policy-making systems as part of the climate finance fight is fundamental if we are to truly re-chart the fates of these interconnected issues.
THE PROBLEM
From wildfires and heat waves to extreme weather disasters, the climate crisis is destroying lives, community health, safe housing and workplaces, stable economies, and more. Still, it didn't grow in silo.
This crisis was perpetuated by a system of extractive, unaccountable, and inequitable economic systems that are built on and feed off systemic racism and economic inequality. Black, Indigenous, people of color, lower-income, and working-class communities who are often hit the hardest by the destructiveness are also left with little resources and no accountability to right the harms or prevent them. Yet, despite being the most impacted and holding critical expertise, these communities are too often shut out of spaces where solutions should be taking place. This active exclusion from policy-making and corporate accountability measures only exacerbates injustice and blocks effective action on climate change.
The "business as usual" market mindset and corporate short-term profit pressures also continue to propel climate change and its disproportionate impact on historically marginalized communities- and keep companies from adopting more inclusive and sustainable practices.
But it doesn't have to be this way. Challenging the status quo and creating more equitable finance and policy-making systems as part of the climate finance fight is fundamental if we are to truly re-chart the fates of these interconnected issues.
A WAY FORWARD
With more than $6.5 trillion in investor power from US public pension funds, we can leverage the transformative power of publicly-held capital for real-world climate solutions to ensure a just transition to a more sustainable and inclusive economy.
Just imagine what could be possible by awakening the tremendous, untapped power in how pensions invest and use their lending power to push destructive companies and unjust economic systems to change their behavior! We see economic opportunities in tackling the climate crisis, investments that protect workers' retirement future and safer workplaces, real accountability for harmful companies, and a more just economy that serves the people and the planet.
And we can do this in a way that builds more substantial collective power. We can shift power in shaping the future of pensions and the economy by dismantling barriers to knowledge and creating a broader, more diverse group of voices that catalyze bolder solutions built to last.
WHAT THIS MEANS FOR CFA
For CFA, that means demystifying the financial system, creating opportunities for impacted communities to have a voice, and offering the tools and support for finding and pursuing the most effective policy levers for change. It means focusing on driving durable policy solutions in public pension funds that reflect working people's and working-class communities' long-term financial and climate-related needs. We are doing this work with a commitment to help strengthen the workers' voice in shaping what kind of future their pension investments are funding.
The lens and commitment in how we do the work– in both policy outcomes and processes:
Ask ourselves, "Who has a voice in setting standards for the kind of economy we operate within and for accountability for how corporations' behaviors harm people and our planet?" And push for the creation of different policy-making methods that change who shapes the policies that steer the kind of future we invest in.
Help foster more democratic and inclusive policy-making systems needed to realize an inclusive economy that cares for the people and is better equipped to tackle the climate crisis.
Make finance systems more accessible, dismantle gate-keeping access to knowledge, and open the door for more voices weighing in and shaping the solutions on what kind of future their money funds.
Effective climate action requires policy strategies that seek environmental sustainability and prioritize equity and inclusion. By aligning investment decisions with equitable climate solutions, we can drive systemic change, ensuring that progress in one area does not come at the expense of another.
For more about our work and approach, check out About Us and our Values.
Questions about CFA, our work, or how we may collaborate? Don’t be shy— reach out!
ABOUT CLIMATE FINANCE ACTION
Climate Finance Action (CFA) is a women-led, 501(C)3 non-profit organization equipping stakeholders and decision-makers to leverage the transformative power of publicly-held capital for real-world climate solutions to ensure a just transition to an inclusive economy in favor of people and the planet. With a focus on collaboration, education, and strategic partnerships, CFA has facilitated groundbreaking dialogues, developed comprehensive educational materials, and engaged with numerous stakeholders— educating 8,000+ union leaders and members and advising over 40 state treasurers and pension staff working towards policy reform.
