Climate Change, a multifaceted challenge: the role of psychology, industry, business, policy

The Intersection of psychology and climate change action

Climate change affects every sector, and psychology plays a crucial role in both mitigation and adaptation. Social psychology informs how to engage more people in climate action—through targeted communication and behavioral recommendations. Clinical psychology addresses the mental health toll of the climate crisis, offering support and interventions to help individuals cope with eco-anxiety and restore a sense of control.

Dr Joanna Grzymała-Moszczyńska, Jagiellonian University (Poland). She works on peoples’ motivations to engage in collective actions. Her works also extend on the issues related to activism burnout.

Finnish businesses and municipalities leading the way

Finland’s business sector is increasingly integrating climate change into strategic planning, understanding that proactive companies will lead the market. As industry leaders put it: “If we wait for laws to change, we’ll end up buying solutions from others”.

Key examples include:

  • Neste: Developing next-generation biofuels;
  • Vaisala: Supplying global temperature measurement equipment;
  • Valtavalo: Pioneering recyclable LED lighting, even relocating manufacturing from China to Finland to enhance sustainability.

Finland’s expertise in forestry and agriculture also enables significant carbon sequestration, strengthening its climate commitments.

Finnish cities are paving the way. They are setting the pace for carbon reduction, with ambitious climate targets. The HINKU network of municipalities, for example, has pledged to cut greenhouse gas emissions by 80% from 2007 levels by 2030 — a remarkable commitment. Major cities are raising the bar even higher: Vaasa aims for carbon neutrality by 2035, Turku by 2040, and Helsinki by 2050. This level of ambition is unprecedented and signals a transformative shift in urban sustainability.

Watch how Finnish business and cities are driving this change and addressing the climate change : YouTube video (Jouni Keronen, Executive Director of the Climate Leadership Council).

Finland’s approach offers real hope, proving that clear targets and unwavering commitment can turn climate goals into reality.

Gaps and opportunities, what’s missing?

Industry accountability: Businesses must move beyond greenwashing and eliminate environmentally harmful products and services. Ethical choices should be the only options available.

Individual impact: Household choices account for about 68% of Finland’s carbon footprint (SYKE, 2009 – Finnish Environment Institute), with similar patterns in Canada. Psychology can empower individuals by providing support networks and spaces for collective action.

Climate justice: While individuals contribute to climate change, the largest damage comes from corporations and lobbyists pushing agendas that contradict scientific warnings. Sahelian farmers are adapting to climate change, but for how much longer?

What more can be done?

Policy enforcement: The Paris Agreement’s 2°C target requires a 95% reduction in greenhouse emissions by 2050. Yet, recent political trends (2024 – 2025) show a worrying shift toward ultra-liberal, conservative measures that threaten progress.

Psychological support: Expand access to professional mental health resources and community groups to help people process climate-related emotions and take meaningful action.

A Call for Systemic Change

The climate crisis demands a transformation of socio-technical systems. Psychology, business, policy and all fields must collaborate to:

  • Accelerate clean energy investments and energy efficiency;
  • Hold corporations accountable, and all sectors, for environmental harm;
  • Empower individuals with information, support, and ethical choices.

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