Putting an “A” in STEM
Cover photo credit, brain coral: 7039304 Michael Ludwig Dreamstime.com
Introduction:
How does substantive change really happen IRL (in real life)? This has been an ongoing question for me since starting to work in the field of sustainable finance more than eleven years ago. In my view, this is at the heart of the topic and an essential question to address. In other words, how can we really transform finance to accelerate the changes required for a credible low-carbon economy, as well as to support tangible adjustments to ensure business practices are aligned to planetary boundaries. Is the market “rationality” enough to drive transformation?
Sticks and carrots:
One immediate way to create change is to use force, punishment and shame., namely, a stick approach. In the field of sustainable finance this could translate into new mandatory regulations for the financial industry restricting the funding of oil and gas, implementing climate stress testing at banks or ensuring there are significant fines for financial institutions caught greenwashing. No doubt this is an effective way to create change. This type of thinking also underpins much of the mainstream analytical risk and compliance led approach to sustainable finance today. However, is this the most effective way to create change and can it be supplemented?
In addition to sticks, carrots can be used to trigger changes, carrots for the industry being mostly financial incentives.. For example, which business opportunities could emerge from sustainable finance products, or what bonus could be paid out for meeting a sustainable finance target? This sounds simple and effective at first, but is it really how major shifts happen in practice?
Innovation and change:
Take phones, over the forty five years of my life, they have moved from a fixed appliance with a rotary dial and cord in my family home, to a cordless one (quite a revolution at the time)! Back in 1997 my first mobile was part of the benefits included with my university student bank account. The things then moved relatively quickly towards smartphones, with now access to phones devices trending as more popular than toilets globally. It has been a huge change which has happened relatively quickly and not the only example.
In this respect, the innovation curve can be a helpful way to consider how change happens. Global adoption of a first mobile phone and then a smartphone, started with early adopters and innovators. This group included people known personally and or famous role models, opinion leaders. When it comes to sustainable finance, seeing the role models and leadership of other organisations can be a motivating factor. This can create a sense of FOMO in financial institutions who are often looking for the new and shiny area of growth. However, financial institutions are mostly risk averse to lead change from the front, particularly in what is perceived as a political topic, which is not well understood and is easily misunderstood as detrimental to profits.
STEM and art:
So, what does all of this have to do with art and STEM? STEM stands for Science, Technology, Engineering and Maths subjects. It is simplifying, but along with finance and accounting these are thought of as left brain topics. This part of the brain deals with logic, data and analysis for example. Left brain style thinking dominates financial services.
“You don’t have to be great to start, but you have to start to be great.”
“Darling it’s better, down where it’s wetter, take it from me.”
“What you think, you become.”
Sebastian the crab, a Little Mermaid
The focus on analytical thinking can nevertheless be at the exclusion of the right brain which - putting it simply - is responsible for creativity, art and thinking more holistically (rather than in a linear way). This right brain style of thinking is often missing from some sustainable finance conversations which tend to be concentrated on incremental data and methods through a short-term lens. Unfortunately, this potentially means missing ambitious new types of innovation and it can stifle more meaningful substantive change. Looking at the business model changes with telephones, was this led by the incumbent companies? The answer is usually no…
World Ocean Day 2024:
Art and creativity is a way to access our right brain. It puts our emotional state in a different place so we access different ways of thinking and being. i.e. supporting conditions for new innovations. For the World Ocean Day this year, I had the privilege to participate to the Blue Commonwealth event celebrating ocean science, art and women. It featured an economist from the Blue Marine Foundation and a communications specialist from the International Maritime Organization, as well as a marine scientist. This technical content was combined with amazing artistic ocean-inspired performances on the steel drum/keyboard and a royal ballet soloist. Furthermore, panel discussions and presentations included many other experts in their respective fields, all promoting the need and solution to protect our Oceans.
As an audience member commented during the evening, this event was all about putting the A for art, into STEM meaning it becomes STEAM.
STEAM examples:
Human brains are capable of awesome things, including changing our minds/beliefs, creating innovation and art. Perhaps when it comes to sustainable finance we should also keep in mind the importance of art and inspiration when looking for transformational changes. There are already so many climate related reports and datasets available. This sets the scene, helps to look for solutions but we have an opportunity to go even further and more holistically by using a STEAM approach.
Some examples are:
Including music in meetings, for example at the open or close
Using tools such as drawing, post-its or playdough to consider difficult issues more deeply without a screen
Incorporating short periods of reflection time in meetings
Sharing short climate-related films with colleagues or organising a screening internally
Asking colleagues about what inspires them to work in this area or what art brings to mind the environment
This is not an exhaustive list, the more the merrier.
Thank you for reading. If you wish to get in touch with the blog author Rebecca, please email seawolfsustain@gmail.com. Seawolf Sustainability Consulting offers, workshops, training and advice in the field of sustainable finance, including blue carbon.