Tackling the Climate Crisis Through Finance

Climate change is one of the greatest challenges of our time, profoundly impacting our ecosystems, economies, and societies. As we witness this growing issue, we as humans and businesses have a responsibility to take effective climate action. Adopting a climate justice approach demands that we prioritize equity and human rights in all decisions and actions concerning climate change. By embracing this approach, we are securing a sustainable and equitable future for all, acknowledging our collective duty to safeguard the planet for present and future generations.

Research has shown that the largest cause of climate change can be attributed to greenhouse gas emissions, often from corporations that induce these emissions through fossil fuel use, intensive agriculture, and deforestation. While individuals may feel they contribute to solutions by adopting electric vehicles, supporting sustainable businesses, or conserving energy, the critical role of climate finance in addressing this crisis is often overlooked. The New York Times has reported that just 100 companies are responsible for more than 70% of global greenhouse gas emissions, many of them among the largest corporations. As consumers of these companies, we inadvertently finance these emissions, exacerbating the climate crisis. Organizations’ decisions on where to allocate their financial resources play a crucial role in advancing climate justice, as these decisions are invested in projects and loans that either reduce greenhouse gas emissions or accelerate them. By incorporating climate finance into the financial structure, organizations are intentional about how their funds reduce greenhouse gas emissions and enhance resilience to climate change. Climate finance emphasizes advocacy for partnerships with banks and insurers, major custodians of financial assets, to prioritize climate solutions and support a just transition away from funding fossil fuel enterprises.


“The world’s 60 biggest banks committed $6.9 billion over 8 years to the fossil fuel industry, driving climate chaos and causing deadly local community impact” (Source: Banking on Climate Chaos), which was essentially derived from organizations that chose these banks as custodians of their funds. When considering a bank, it is essential to do your due diligence around ethical and sustainable practices, which can be performed through reviewing CRA ratings, alignment with the Paris Climate Accord, or whether they are a B Corp certified organization. By conscientiously choosing a banking partner, individuals and organizations ensure that their financial holdings do not exacerbate the climate crisis but instead contribute to efforts aimed at addressing it.

Insurance is one of the most impactful industries, as they decide what’s insurable and influence fossil fuel expansion, business operations, and green tech adoption. Insurers fund projects through the premiums collected and these can undermine your organization’s goals, further increase premium costs, and contribute to the climate crisis. Given the industry’s scale and complexity, achieving meaningful change requires a collective shift towards insurers prioritizing sustainable investment practices. As businesses, we can scrutinize the types of projects insurers support, assess their efforts in combating climate change, and favor insurers certified as B Corps. This change in approach encourages insurers to adopt more sustainable and responsible practices, thereby advancing global efforts to mitigate climate risks and promote environmental stewardship.

As a result, climate finance is about catalyzing a transformative shift towards sustainability through financial practices and being intentional about your stakeholder alliances. By incorporating effective climate finance, we can mitigate the amount of funding provided towards fossil fuel industries and projects and in turn protect vulnerable communities and shift towards a greener environment and a prosperous, just society . 

The time to act is now; together, we have the opportunity to build a

more sustainable and resilient world for future generations.


1.“JPMorgan Chase.” Banking on Climate Chaos. Rainforest Action Network, 2024,

2. McKibben, Bill. “Friction Is Growing.” Bill McKibben, Substack, 2024,

3. “Causes and Effects of Climate Change.” United Nations,

4. “Black Environmentalists Talk About Climate and Anti-Racism.” The New York Times, 3 June 2020,

5. “Climate Change Matter of Justice. Here’s Why.” UNDP Climate Promise,,relation%20to%20the%20climate%20crisis

Sonja Mann, CPA

Sonja is a financial analyst who holds a CPA designation and over five years of extensive experience in accounting. Throughout her career, she has specialized in analyzing budgets and forecasts, overseeing financials, and providing strategic financial recommendations aimed at enhancing organizational performance. At Circular Rubber, she assists in translating financial data into insights to help make informed decision-making and optimize financial outcomes.