Greetings from Los Angeles, where the Milken Global Conference recently concluded. For those unfamiliar, Milken is a significant event for business and finance leaders—a chance to leave Manhattan and network with industry leaders and policymakers in Beverly Hills.
It’s not primarily a climate conference. This year, sessions featuring U.S. Treasury Secretary Scott Bessent and NVIDIA CEO Jensen Huang attracted large audiences. However, the real value for many lies in the private discussions—an opportunity for information gathering and deal-making.
For me, Milken provides insights into how key figures in business and finance view energy, climate, and related topics. While climate change may not be the top priority as CEOs deal with tariffs and evolving policies, it remains important on the corporate agenda. This is evident not only in the public panel discussions at the Milken conference but also in private conversations among executives in meeting rooms, restaurants, and hallways.
The situation is complex. Companies are navigating increasing climate regulations globally while facing a U.S. government that is less receptive to these concerns. They are trying to protect their operations from climate change risks while also managing their finances during uncertain economic times.
“Since the election, I’ve had countless conversations and haven’t encountered a single company abandoning its net-zero target,” said Nili Gilbert, vice chair at Carbon Direct, a carbon management investment firm, during a Milken panel discussion. “However, they are actively discussing their strategies for achieving those targets.”
My observations from Milken will inform my future reporting, but I want to highlight a few key takeaways:
Physical risk
Much of the public discussion regarding business and climate has centered on emissions reduction. However, companies are now also considering the physical risks that climate change poses to their operations. This shift is driven by both that require climate risk assessments and recent climate-related disasters that have highlighted these risks.
Many companies prefer not to directly address climate risk due to PR concerns. However, a closer look at their sustainability initiatives reveals the connection. For example, an agriculture company might help farmers in its supply chain conserve water, or a fashion company might diversify its sourcing of materials. “Mapping these impacts and hazards is crucial,” said Melissa Fifield, who leads the BMO Climate Institute, during a panel I moderated on water and climate. “It has a significant impact on many companies.”
Investment speed
Climate action requires substantial investment. The trillions needed for mitigation and adaptation will come in the form of infrastructure, venture capital, or private equity investments. However, current political and economic uncertainty is making companies and investors hesitant to make large investments, causing them to prioritize cash conservation.
“These asset owners… want to focus on climate and infrastructure,” said Mark Berryman, partner at Capricorn Investment Group, an impact investing fund, during a Milken panel. But “they may just kind of tighten their belt in general, even if it was not a climate focused investment,”
AI, on the other hand, presents a promising area for investment. As before, the growing demand for data centers is driving investment in clean energy.
Financial innovation
Innovation often refers to new technologies, but financial innovation is equally important for bringing clean energy solutions to market.
Throughout the conference, it was encouraging to hear leaders in climate and finance discuss innovative ways for companies to raise capital for climate projects. This includes ongoing discussions about carbon markets and , where public or philanthropic funds are combined with profit-driven investments. It also includes emerging approaches like private credit, where investors outside traditional banks lend directly to companies.
Ultimately, financial innovation is crucial for the energy transition, and these issues need to be resolved.
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