Reumo
From the mid-twentieth century onwards, intensified human activity has profoundly transformed the Earth System, disrupting the environmental balance that supported the development of diverse human civilizations. The Anthropocene, proposed as a new geological epoch, signifies that our planet is now on an unprecedented path, provoking widespread curiosity and concern regarding the current and future state of nature. This new zeitgeist reflects a growing awareness in the scientific community of the urgent need for governance mechanisms that can maintain safe conditions for life on Earth (Lorimer, 2016).
Within academic and political spheres (Steffen et al., 2015; Rockström et al., 2009; Raworth, 2017; Klein, 2019), there is a consensus that we have surpassed the sustainable limits of natural resource exploitation, necessitating radical shifts toward energy transitions and reduced consumption. These shifts are not only overdue but also crucial for avoiding catastrophic ecological scenarios, especially for vulnerable social groups most affected by climate change. Addressing these challenges requires comprehensive governance strategies that integrate diverse political, epistemological, and ethical perspectives to establish priorities and action plans that can effectively manage both current and emerging risks.
The financial sector plays a critical role in fostering sustainable futures by supporting corporate endeavors that contribute to biosphere resilience, as highlighted by Crona et al. (2021). Their research investigates the intersection of financial services and the imperative for sustainability in the Anthropocene era, underscoring the need for transformative change in sustainable finance. Current financial risk frameworks, often focused on financial materiality and sector-specific risks, may inadvertently overlook the broader impacts of investment externalities, exacerbating climate and environmental changes. This oversight highlights a cognitive disconnect within financial risk frameworks regarding ecological considerations, underscoring the importance of closing the cognitive risk loop to better assess and mitigate systemic risks.
Technological and financial risks pose critical questions for governance: How can decision-makers act ethically when knowledge about potential consequences is incomplete? The global interconnectedness of technology, financial networks, trade, and environmental impacts means that localized events can now have widespread repercussions (Beck, 2011). Consequently, the perception of reaching an irreversible ecological tipping point may drive precautionary attitudes that are more about managing public perception than committing to substantive risk mitigation. The concept of ‘absolute sustainability’ suggests the need for a more comprehensive approach to risk assessment, integrating both environmental and financial considerations to reflect the true risks associated with economic activities (Amosh, 2024).
In the context of a risk society (Beck, 2011), it is vital to distinguish between precaution driven by information availability and genuine governance commitments to mitigate risks and promote sustainability. While catastrophic scenarios can shape public opinion and influence policy, they can also impose unnecessary restrictions on innovations that could help avert greater ecological harm. Effective governance should balance caution with the potential benefits of technological advancements and ensure that financial frameworks encompass environmental considerations and investment externalities.
The Anthropocene challenges us to rethink governance in light of its social, ecological, and planetary implications, particularly concerning concepts like development, capitalism, and modernity (Lorimer, 2017). This paper aims to explore the feedback processes of the Anthropocene, specifically examining how expanding technological and financial frontiers can mitigate risks but also create new forms of environmental degradation. By analyzing technological advances in the energy and agriculture sectors, as well as financial frameworks, we investigate the extent to which these innovations contribute to a cycle of risk that exacerbates pressure on Earth's regenerative capacities.