Climate Crisis: Why Climate Risk Is Investment Risk | Witold Henisz — Ripple Effect Podcast
Episode Description
EPISODE OVERVIEW Witold Henisz, Vice Dean and Faculty Director of Wharton’s ESG Initiative, has been leading research on environmental, social, and governance factors long before ESG became a trending topic. In this podcast, he explains the importance of making the business case for ESG and addressing climate change, and why it’s so difficult to put hard science behind the numbers.
Topics and questions covered: 00:00 - Introductions 0:55 - Defining ‘ESG’ 5:08 - Discussing Engine No.1 and Exxon Mobil 9:29 - Using ESG data to adapt 13:28 - Addressing the limits of ESG investment 17:20 - The future of ESG investing
PODCAST OVERVIEW Every day, business scholars answer pressing questions in their research — but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.
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Brief Summary
This episode discusses ESG factors, climate risk, and Engine No. 1's influence on corporate governance.
Key points
- Investments in Oil Fields. Investments made today in oil fields may not pay off in the future due to changing energy demands.
- Understanding ESG. ESG stands for environmental, social, and governance factors that influence investment decisions.
- Climate Change Financial Case. The financial case for addressing climate change is becoming clearer and more urgent.
- Fossil Fuel Vehicle Future. The future of fossil fuel vehicles is uncertain as electric vehicle adoption increases.
- Political Climate for ESG. The anti-ESG movement is gaining traction with the new Republican Congress.
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Episode highlights
- Understanding ESGESG stands for environmental, social, and governance factors that influence investment decisions.“The ESG movement is about putting environmental, social, and governance factors in.”2:00Apr 4, 2023
- Climate Change Financial CaseThe financial case for addressing climate change is becoming clearer and more urgent.“The business case for addressing climate change is increasingly easy and straightforward.”4:00Apr 4, 2023
- Fossil Fuel Vehicle FutureThe future of fossil fuel vehicles is uncertain as electric vehicle adoption increases.“Investments in fossil fuel vehicles in 2050 may or may not pay off depending on electric vehicle uptake.”4:48Apr 4, 2023
- Political Climate for ESGThe anti-ESG movement is gaining traction with the new Republican Congress.“The anti-ESG movement is gaining a lot of power especially with the new Republican Congress.”15:15Apr 4, 2023





