Many think climate and environmental pollution are immediate threats to the human race, and while not all endorse an impending apocalypse almost everyone thinks action needs to be taken. To keep consumers and investors on side companies want to be seen to be reducing their carbon footprint and to be showing concern for the environment while maintaining profits. Environment Social Governance (ESG) investments, carbon credits and green bonds were supposed to be the answer. But critics claim returns on these investments have gone into reverse and we don't know how to protect the climate and deliver profits. Moreover, recent research from the European Commission found 68% of US executives admit their companies are guilty of greenwashing, and some high-profile critics claim ESG is nothing more than a scam.
Should we give up on green market initiatives as an exercise in virtue signalling rather than valuable environmental action? Are there more credible genuine means to make the economy work for the planet? Or, should we accept that capitalism and environmentalism are fundamentally incompatible?
Co-leader of the Green Party Carla Denyer, author and campaigner Guy Shrubsole and macro policy lead at Deloitte Socrates Mokkas debate green capitalism.