Banking on a just transition

CITU low-carbon housing, Leeds (Credit: CITU)

The Banking on a Just Transition project aims to identify how banking can support a just transition across the regions of the UK.  There is a strategic opportunity for banks to become active participants in the move to a zero-carbon and inclusive economy. This means taking steps to play a role in ensuring that people and places are not left behind and that the transition involves broad social and economic participation and spread of benefits.

This project seeks to catalyse strategic action through a process of research and outreach. Initial research questions include:

  • Policy frameworks: What are the key climate and economic policies needed to ensure that banks can support scaled-up action in the real economy with far greater urgency?
  • Strategic purpose: How can banks and the banking system respond to the social risks and opportunities that flow from the transition to a net-zero economy in terms of strategic purpose?
  • Market demand: How can banks and other finance providers work with households, enterprises and public authorities to design the sustainable financial products that will be needed?
  • Public and blended finance: What is the best mix between bank finance, public finance and impact investment, particularly to mitigate risk and ensure inclusion in the transition?
  • Regional dynamics: How can banking support place-based climate action, responding to local needs, particularly in a regionally-imbalanced economy such as the UK?
  • Financial regulation: What is the role that financial regulators can play in overseeing climate risks and the broader social implications of the transition?

The project is designed as a process of research and collaborative dialogue facilitated by the project’s partners, the Grantham Research Institute at LSE and the Sustainability Research Institute at the University of Leeds, working in partnership with UK Finance. It builds on work with institutional investors on the just transition which is now backed by 130-plus institutions with more than US$8 trillion in assets under management.

The dialogues will bring together banks, other financial institutions and key stakeholders over the second half of 2019 and in early 2020. Discussion will be informed by the contributions of an expert and multi-faceted core advisory group (see below).

Advisory Committee

Andrew Austwick Finance for Enterprise Joint Managing Director Advisory Committee Member
Colin Baines Friends Provident Foundation Investment Engagement Manager Advisory Committee Member
Kate Bell TUC Head of Economic and Social Affairs Advisory Committee Member
Kathleen Britain HSBC Chief of Staff and Head of Strategy Advisory Committee Member
Kirsty Britz RBS Director of Sustainable Banking Advisory Committee Member
James Burrows Big Society Capital Investment Director Advisory Committee Member
Fiona Cannon Lloyds Banking  Group Group Director, Responsible Business and Inclusion Advisory Committee Member
Bruce Davis Abundance Investment Joint Managing Director Advisory Committee Member
Nikki Fenton Unity Bank Chief financial Officer Advisory Committee Member
Tony Greenham SouthWest Mutual Chief Executive Officer Advisory Committee Member
Andy Griffiths Investor Forum Executive Director Advisory Committee Member
Alice Hu-Wagner British Business Bank Managing Director Strategy, Economics and Markets Advisory Committee Member
Andy Kerr Climate KIC Director, UK and Ireland Advisory Committee Member
Anna Laycock Finance Innovation Lab Chief Executive Officer Advisory Committee Member
Paul Nicoll Triodos Social & Cultural Team Manager, Business Banking Advisory Committee Member
Stephen Pegge UK Finance Managing Director, Commercial Finance Project Partner
Helen Wildsmith CCLA Stewardship Director, Climate Change Advisory Committee Member

 

Project delivery and funding

The Banking on a Just Transition project is being delivered in partnership with UK Finance. It is funded by HSBC UK.


A two-page overview of this project is available here