The Transition Finance Playbook: A practical guide for financial institutions
Mobilizing transition finance to drive the net zero future
Financial institutions must lead the way. Achieving global net zero goals and reducing carbon emissions at scale depends on the financial community stepping up to mobilize capital. The time for action is now.
Why transition finance matters
Transition finance is critical to decarbonizing high-emitting sectors that are essential to economic growth. Yet the world faces a significant funding gap: a global shortfall of nearly US$200 trillion in transition finance between now and 2050. Bridging this gap requires immediate and coordinated action across capital markets and financial institutions.
A practical guide for financial institutions
To help address this challenge, the Institute for Sustainable Finance (ISF) and Accounting for Sustainability (A4S) have partnered with leading asset managers and asset owners to produce a practical guide to scaling transition finance. Developed with insights from members of the A4S Canadian CFO Leadership Network, the guide offers clear and actionable steps that empower financial institutions to:
- Integrate transition finance into investment and lending strategies
- Support real-world emissions reductions
- Align with fiduciary duties and long-term value creation
Global impact through financial leadership
While informed by members of the Canadian chapter of the CFO Leadership Network, the guide is relevant to financial institutions globally. The challenges and opportunities in transition finance are universal. The actions outlined can support finance flows across borders and industries – helping to drive global climate action through more effective deployment of sustainable capital.
What you can do
Financial professionals – from asset managers to institutional investors and corporate CFOs – have a pivotal role to play. This guide is designed to empower decision-makers across the financial community to:
- Understand the urgency of the transition
- Apply best practices in sustainable investment
- Accelerate capital toward climate-aligned finance
