Investing in a just transition – UK project
For current work on financing the just transition in the UK, see https://justtransitionfinance.org/region/uk/
Project objectives and activities
The Grantham Research Institute built on its global investing in a just transition project to design a dedicated project that focused on the UK and the role that investors can play in linking the environmental and social dimensions of the transition. The project was implemented together with the University of Leeds, which focused on a regional pilot exploring the transition risks and opportunities faced by the Yorkshire region and the contribution that investors could make.
The UK project:
- Surveyed the UK policy and investment landscape on the just transition, mapped high-level transition exposure across the country, and identified the specific case for investor action.
- Conducted an in-depth regional case study of Yorkshire, analysed transition risks and opportunities, and worked with local stakeholders to develop a place-based agenda for the just transition.
- Worked with leading financial institutions to apply the framework for investor action in a series of Yorkshire-based examples, covering shareholder engagement, capital allocation and policy dialogue.
- Identified how to strengthen the role of investors in financing a just transition in Yorkshire, including building up a pipeline of investable assets and highlighting any barriers that are preventing this.
- Developed a national roadmap for investing in a just transition, setting out the lessons of the Yorkshire pilot for other regions, how investors can bring together the environmental and social dimensions of their climate strategies, and what policy reforms are needed to ensure that the just transition is embedded in the financial system.
The UK project started in July 2018. An initial landscape review setting out the specific UK challenge of investing in a just transition was published in February 2019. A roadmap for investors was published in October 2019.
You can read about our current work in this area on the dedicated Just Transition Finance Lab website, launched in February 2024: https://justtransitionfinance.org/region/uk/
Project delivery and funding
The Investing in a Just Transition UK project was delivered in partnership with the Principles for Responsible Investment (PRI) and Trades Union Congress (TUC). The project was funded by the Friends Provident Foundation.
Publications
Financing climate action with positive social impact: How banking can support a just transition in the UK (July 2020)
Financing inclusive climate action in the UK: An investor roadmap for the just transition (October 2019)
Investing in a just transition in the UK: How investors can integrate social impact and place-based financing into climate strategies (February 2019)
Investing in a Just Transition in the UK: Project scoping and introduction report