Directing global institutional investment towards a fair and inclusive transition – a just transition – to net zero

Delivering a just transition at the pace now required is going to require the mobilisation of trillions of capital. As part of the UK’s 2021 G7 presidency, the Institute was tasked to see how this might be achieved.

Driving an impact-focused economy

As part of its 2021 G7 presidency, the UK government convened an independent Impact Taskforce, led by the Impact Investing Institute and the Global Steering Group for Impact Investment (GSG), to consider how to drive an impact-focused global economy.

The Institute led on the design of principles and recommendations for financing vehicles that could encourage institutional investors, such as pension funds, insurers and mutual funds, to invest in a just transition.

Based on engagement with 170 finance, policy and thought leaders, representing 110 institutions in 38 countries, we created our ground-breaking report ‘Mobilising institutional capital towards the SDGs and a Just Transition.’

Creating practical tools and approaches

The report outlined concrete tools and approaches to accelerate a just transition to net zero. This included identifying areas of investment focus, addressing investment barriers, and creating a blueprint for investment vehicles.

Through case studies and summaries of key actions for different stakeholders, we have shown how these principles can work in the real world.

We want to see many more institutional investors have the confidence and the tools to embed just transition principles into their investment strategies.

Next steps

We have turned the recommendations of the Taskforce into action through our Just Transition Finance Challenge, which supports fund managers to design and structure investment products that help deliver a just transition.

Are you interested in joining the Just Transition Finance Challenge?

We would love to hear from you

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