Report maps out role investors can play in just net zero transition

A “just net zero transition” should be at the heart of investors’ strategies, the Grantham Research Institute has said.

It published its report, Financing inclusive climate action in the UK: An investor roadmap for the just transition, on 1 October, in which it explained the transition to net zero greenhouse gas emissions “needs to be an inclusive process, delivering social justice for workers, communities and consumers”.

It added that the advantages of a just transition to institutional investors include more robust portfolios, a reduction in systemic risks, a realisation of fiduciary duties and the ability to generate positive social impacts.

The report outlined a roadmap of priority actions moving forwards, calling for investors to incorporate the goals and aspirations of a just transition into engagement with the companies they own; for allocation of capital to be shifted towards assets aligned with the just transition; and for investors to use their voice to call for UK governments to introduce a strategic framework for the just transition.

Grantham Research Institute