This guide was generated as part of the “Investing in a Just Transition Initiative,” a joint program of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE) and the Initiative for Responsible Investment at the Harvard Kennedy School. This initiative seeks to enable institutional investors to support inclusive economies and sustainable development through their action on climate change. This guide explains the motivations for investor action toward just transitions and describes how investors can apply existing approaches to pursue a just transition in their climate strategies and core operating practices.
Investors can make an important contribution to the just transition agenda as fiduciaries, stewards of assets, allocators of capital, and influential voices in public policy. The authors identify five ways in which investors can incorporate just transition principles into their practices, both as individual institutions and collective initiatives. These approaches include investment strategy, corporate engagement, capital allocation, policy advocacy, and shared learning. The authors provide concrete examples of these approaches and recommendations for next steps.