Chapter 9 examines the evidence of growing adoption and initiatives by corporations, businesses and the financial system to incorporate actions to mitigate environmental risks and improve the global environment, and look in particular at the possibility of private sector action to move toward better environmental stewardship. Firms increasingly find that improved environmental performance reduces their overall cost of capital and their attractiveness to potential investors. However, better environmental scarcity and risk management by firms requires a range of complementary policies for green financing and investment; ending the underpricing of nature; and taxing major biosphere exploiters. Corporations that are willing to become biosphere stewards should also collaborate with governments in collective action to address global environmental risks.

The Trump administration inflicted long-term damages on America’s health, economy and environment. But America can still reset its path toward an energy transition that shares benefits with local communities hosting renewable energy projects and that supports the economic diversification of communities reliant on oil and gas extraction. The Biden administration reorientated federal agencies’ actions under existing laws to support the clean energy transition. These actions – strengthening environmental regulations, requiring mandatory corporate disclosure on climate risks and aligning federal leasing of public lands and seas and permitting-processes to value conservation and climate mitigation – can help incentivize investment flows into renewable energy and low-carbon economic activities. Ambitious federal investments into clean energy infrastructure and assistance to oil- and gas-reliant communities requires legislative actions. With Republicans who support both economic progress and environment and climate protection no longer a strong voice in Congress, the budget reconciliation process may well be the unique avenue for Democrats to enact legislation on public investments to accelerate the energy transition. The voices of younger Republicans who favor climate protection, alongside those of their Democrat counterparts, offer some hope that Congress will be forced to return to bipartisan stewardship of America’s air, water, lands and seas.