Our Goal

The world needs capital at scale to achieve the United Nations’ Sustainable Development Goals (SDGs) and a transition to a world of Net Zero carbon that is inclusive and socially beneficial – in other words, a Just Transition. The need for capital is particularly acute in low-income communities and developing countries, for whom existing funding gaps were further exacerbated by the Covid-19 pandemic.

All actors in financial markets need to work together to direct more of the $154 trillion that are professionally managed towards tackling the world’s most urgent environmental and social challenges.

Our goal is to mobilise institutional investors and other market actors to unlock the capital needed to finance a Just Transition, in the UK and globally.

What we are doing to achieve it

As part of the G7 Impact Taskforce (an industry-led initiative backed by the UK’s 2021 presidency of the G7), we delivered a report identifying policies and instruments to mobilise private capital at the scale needed to finance a global Just Transition.

Based on engagement with 170 finance, policy and thought leaders representing 110 institutions in 38 countries, the Taskforce’s report outlined concrete tools for investors to accelerate a transition to Net Zero that is inclusive and socially beneficial, particularly in low-income communities and those in the Global South.

To give all actors a clear and shared understanding as to what constitutes a Just Transition, the Impact Taskforce identified three critical Elements of a Just Transition, applicable across all geographies, sectors, policies and investments. To be aligned with a Just Transition, actions should:

  1. Advance climate and environmental action
  2. AND improve socio-economic distribution and equity
  3. AND increase community voice

The Taskforce also put forward a Blueprint to support the integration of the Just Transition Elements in the design of finance vehicles across asset classes and a series of case studies of existing financing vehicles that integrate a Just Transition approach while being attractive to institutional investors. We have also developed targeted summaries of the key findings and actions for key actors – including asset owners, asset managers and policy makers.

You can learn more about you can do to mobilise more finance towards a Just Transition here.

Read the Impact Taskforce’s report on mobilising institutional capital for the SDGs and a Just Transition.

View here

Summaries of key findings and actions are available for:

Case studies of Just Transition financing instruments across asset classes

We are currently leading targeted engagement with identified audience groups who have a role to play in mobilising institutional capital towards achieving the SDGs and the Just Transition. If you would like to be involved in this engagement, contact [email protected].

Case studies

Energy 4 is Actis’ fourth energy-focused private equity fund investing in electricity generation (buy and build) and distribution businesses (buy and improve) in select countries across Latin America, Africa and Asia. The fund invests across renewables (wind, solar and hydro) and gas technologies.

Ninety One Africa Credit Opportunities Fund 2 (ACO 2) is a senior private credit fund investing in market dominant companies in African financial inclusion, infrastructure and telecoms sectors.

The fund targets the development of the African Debt Capital Markets (DCM) by creating an alternative asset class, crowding in African pension funds.

BlueOrchard’s Schroder International Selection Fund Emerging Markets Climate Bond Fund (CBF) launched in Q2 2021 with seed capital of $75 million. The UCITS fund purchases mainly green bonds, as well as sustainability bonds, sustainability-linked bonds and general bonds aligned to climate action.

Publications

Reducing and absorbing carbon emissions at the speed and scale needed to safeguard our planet requires vast amounts of capital. At the same time a global consensus is emerging that to be sustained and successful, this transition needs to be socially inclusive. Capital will need to be invested in ways that support a Just Transition towards a Net Zero world that is fair and beneficial for all – including the delivery of the United Nations’ Sustainable Development Goals (SDGs).

In 2017, Dame Elizabeth Corley, Chair of the Impact Investing Institute, convened the first meeting of the Taskforce for Growing a Culture of Social Impact Investing in the UK. Since then, the impact investing market has developed significantly – but until now there has not been an estimate of the size of the UK market in its totality. Our report, “Estimating and describing the UK impact investing market”, published in partnership with EY and supported by the Department for Digital, Media, Culture and Sport and Big Society Capital, sets out to change this.

News & Views

We warmly welcome HM Treasury’s launch of the UK Transition Plan Taskforce and look forward to working as part of the Taskforce’s Delivery Group to develop the gold standard for UK companies’ climate transition plans. 

All war, wherever in the world it takes place, imposes huge costs and suffering, particularly on civilians. At this time, the Impact Investing Institute shares the world’s horror at the events unfolding in Ukraine and the suffering the invasion by Russia’s armed forces has brought to everybody in Ukraine.

The Leadership Council, in partnership with the charity pilotlight, have published a new report, The Great British Talent Swap, calling for a sharing of talent and experience between the charitable and commercial sectors.

Events

Upcoming research by MOBILIST and Intellidex has highlighted a growing tension between ESG investment strategies and flows to emerging and frontier markets….