Moving Capital Markets

Why is transition finance important?

Financial institutions recognize that addressing systemic climate-related risks and opportunities aligns with their fiduciary duty to act in the interests of beneficiaries/clients in achieving long-term value.

Globally, many leading banks and the largest pensions have adopted net zero targets and scaled up their efforts to align with the Paris Agreement. However, there remains a global transition financing gap of almost US$200 trillion between now and 2050, requiring significant investment in decarbonizing high-emitting sectors to achieve an orderly transition to net zero.

Immediate and coordinated action is needed from the financial sector. This challenge has been identified by the A4S CFO Leadership Network, and the Canadian chapter members are leading efforts to expand practical guidance for financial institutions.

By acting now, they can play a pivotal role in mobilizing the capital needed and directing finance flows to enable a sustainable future, ensuring positive impact and returns, and supporting a company’s transition.

Moving capital markets: The Playbook

Financial actors can actively support this transition by engaging with expert insights, implementing best practices and driving finance flows into sustainable initiatives.

To address this need A4S is providing expert insights and clear actions to help capital markets support carbon reduction goals and achieve long-term value creation. Members of the Canadian Chapter of the CFO Leadership Network have collaborated to create the guidance ‘Playbook’.

We identified challenges, assessed current efforts by financial institutions, and highlight key actions and tips that other organizations can take to drive sector-wide progress.

If you are interested in attending our deep dive events on the playbook please register your interest below.