**Key Takeaways from the Milken Global Conference: Climate, Risk, and Corporate Strategy**
The Milken Global Conference in Los Angeles, a major gathering for business and finance leaders, revealed nuanced insights into how corporations are navigating climate change amid shifting political and economic landscapes. While climate issues have taken a backseat to tariffs and policy uncertainty in public discussions, they remain a priority behind closed doors. Executives are balancing the need to comply with global climate regulations while managing financial risks in an unstable economy. Notably, companies are not abandoning net-zero commitments but are reevaluating interim strategies, particularly in response to physical climate risks like water scarcity and supply chain disruptions.
**Physical Climate Risks and Corporate Adaptation**
Businesses are increasingly assessing how climate change directly impacts operations, driven by new disclosure rules in Europe and recent climate-related disasters. Though many avoid framing initiatives explicitly as climate risk mitigation, sustainability efforts—such as water-efficient agriculture or diversified sourcing—reflect these concerns. Melissa Fifield of the BMO Climate Institute emphasized that mapping climate hazards is critical, as they pose material threats to companies across industries. This shift highlights a growing recognition that resilience planning is essential for long-term stability.
**Investment Trends and Financial Innovation**
Economic and political uncertainty has slowed large-scale climate investments, with firms prioritizing cash conservation over bold bets. However, AI and data center expansion are spurring demand for clean energy, offering a bright spot for climate-focused capital. Financial innovation, including carbon markets, blended finance, and private credit, is also gaining traction as a way to fund climate projects. As Mark Berryman of Capricorn Investment Group noted, asset owners remain interested in climate and infrastructure but are proceeding cautiously. The challenge lies in aligning financial mechanisms with the urgent need for climate action—a key hurdle in the global energy transition.
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Forrás: https://time.com/7284639/milken-conference-business-finance-climate-change/.