Convergence of Worlds: Environmental Licensing and Risk Capitalism

In the contemporary era, the divide between environmental science and financial capitalism appears increasingly artificial. Having worked as a biologist in environmental licensing and subsequently as founder of startups focusing on investments and mergers & acquisitions (M&A), I observed two distinct realities that are both crucial for global economics but often viewed with mutual suspicion. The measurement units in the world of biology include hectares, endemic species, and hydrographic basins, while financial spheres measure runway (survival time), multiples of value, and synergies. Time is a fundamental concept in these domains: it is long and immutable in one world; brief and flexible in the other. However, reality suggests that these worlds are more similar than they appear to be different. The separation between environmental impact and finance is merely an illusion. What distinguishes them from each other is only our choice of focusing on specific aspects, forgetting the intrinsic connection between them. It is undeniable that industries such as mining and Amazon exploitation have significant economic impacts but also represent growing environmental risks. Science is clear about the potential of these activities to release carbon without necessarily felling trees. As markets debate the relevance of ESG (Social and Environmental Sustainability), it is crucial to recognize that any artificial separation between these two worlds is a fallacy. The true challenge lies in achieving clarity on how to integrate environmental sustainability with efficient financial practices, without falling into unfounded alarmism or irresponsible procrastination.