As part of the Institute’s Just Transition Finance Challenge and together with the Challenge’s 20 Founding Participants, Deloitte and our Knowledge Partner, the London School of Economics’ Grantham Research Institute, the Institute has developed Just Transition Criteria for financing vehicles that can deliver a transition to a net zero carbon world that is inclusive and beneficial to society.
We are looking for your feedback
We are now welcoming feedback on those criteria as part of a public consultation process.
The Just Transition Criteria aim to help investors develop investment products that support the delivery of a fair and inclusive transition to net zero. By using the Criteria, investors can respond to the growing demand for sustainable finance products and gain visibility and differentiation in the market space.
The Criteria will provide asset managers and owners, as well as broader stakeholders, with a common framework to ensure that financing vehicles, such as investment funds and other products, deliver on the three critical elements of a Just Transition, as identified by the G7 Impact Taskforce, by combining:
- Climate and Environmental action (for example, by mitigating, reducing or removing greenhouse gas emissions, reduction and removal)
- Socio-economic development and equity (for example, by providing inclusive opportunities for decent jobs)
- Community voice (for example, by advancing engagement and dialogue with affected communities that are often excluded and marginalised in the context of investment)
Practical tools for asset managers and owners
The Just Transition Criteria have been designed to be used with existing standards and frameworks for sustainable and impact finance. They are applicable across geographies, investment strategies and asset classes.
The document for public consultation provides more information on the specific requirements associated with meeting the Just Transition Criteria, as well as examples of practical implementation.
How to submit feedback
You can find the proposed criteria here, alongside a set of key questions on which we would particularly welcome input.
To provide feedback please use this form.
You can also send us your feedback via email to: consultations@impactinvest.org.uk
The deadline for submitting feedback is 31 March 2023.
We will review the feedback and plan to launch the Just Transition Criteria in mid-2023.
Just Transition Finance criteria
Our proposal for aligning investments with a Just Transition
Launched in July 2022, the Just Transition Finance Challenge brings together leading global financial institutions with over £4tn of assets and assets under management. The Challenge’s goal is to raise awareness of the need for a Just Transition and to mobilise more public and private capital that support a Just Transition.
Although the Challenge is currently closed to new participants, we intend to re-open it later this year. Please register your interest to join the Challenge here.