Institutional investors

Many institutional investors have made commitments to the just transition, but evidence on the impact of these initiatives remains limited. Forceful stewardship across all sectors and asset classes is needed through shareholder and bondholder engagement, building on existing initiatives such as ClimateAction 100+ and the Transition Pathway Initiative (TPI) Centre. Alongside this, investors need to consider the conscious allocation of capital to dedicated funds and assets that actively promote the just transition, notably in private markets (such as infrastructure).

Public financial institutions have a relatively small share of financial system assets at around US$25 trillion, but banks can be highly influential through the expectations they set and types of capital they provide (including concessional capital and guarantees).

The Just Transition Finance Lab team has a track record of producing research specific to investors, dating back to the 2018 Grantham Research Institute publication with PRI and Harvard Kennedy School which aimed to guide to investors on the just transition. We will continue to work with investors to provide detailed research and guidance on how they can integrate consideration of the just transition.