Finance and Capital Markets
Harnessing finance, as a sector and as a lever, to increase momentum for a just transition.
Opportunity
The urgency to address climate change has never been greater and the finance sector has a pivotal role to play. Currently, the financial sector allocates capital in a way that overlooks the risks associated with climate, nature, and inequality, leading to investments that perpetuate existing business models, escalate the climate crisis and put people and nature at risk.
To unlock the investments necessary to fund a just transition in our focus industries, we need to change the rules that govern the finance sector - as well as create the market incentives that allow private finance to flow. Investors need to become active owners of their investments – driving companies towards a transition that values people and nature.
-
1%
of the listed companies with the highest carbon emissions currently have capital allocation plans aligned with net zero -
USD 3-5 trillion
needed annually until 2030 to secure a just transition -
45%
of the increase needed could be covered by private finance
Intervention
Our goal is to drive investment practices and innovations that enable industry transitions while ensuring that people, climate and nature are built into the financial system’s definition of value. We use two interlinked interventions to drive this change.
Spark innovation and enable the incentives and engagement to mobilise finance in industry transitions.
Our work drives investors to actively drive participants in a just transition across our focus industries. We support initiatives that develop the market conditions and create the incentives that steer capital towards a green, fair and inclusive economy.
Support policies, pathways and accountability mechanisms to unlock the finance system across industry transitions.
We seek to align finance sector rules and norms with the needs of a green, fair and inclusive transition. Our work connects and enables collaboration across a broad range of stakeholders to change economic and financial policies that unlock private finance and improve financial sector accountability.
Where we focus
Across our interventions, we concentrate our efforts where we believe they can have the greatest impact, such as:
- Pathways: Aligning finance sector metrics, targets and pathways with an equitable route to Paris goals.
- Accountability: Improving financial sector accountability.
- Policies: Changing economic and financial policies that unlock private finance.
- Innovation: Developing innovative financial mechanisms.
- Incentives: Advocating for financial models and policies that enable industry change.
- Engagement: Driving investors to be more active and effective owners.
Out of scope
Areas outside our current focus:
- Multilateral and development banks reform: Reform to alter these institutions' structures and governance.
- Individual and wealth taxation: Work related to tax policy reforms focused on individuals or wealth.
- Financial inclusion and consumer finance: Work to support these two areas.
- Public spending unrelated to private investment: Activities such as public procurement are outside our focus.
- Broader economic policies: Economic policy and regulations not tied to Finance.
- Divestment campaigns: Divestment campaigns aimed at the investor community.
What we fund
Explore the initiatives we fund.
Grants DatabaseEligibility criteria
Our grants fund partners to work collaboratively on brave initiatives that can contribute to systemic industry change.
Becoming a partnerBEYOND GRANTMAKING
Strong and diverse partners, focused on learning and improvement, drive greater impact.
