20 Jul 2023
Policy makers in the US and UK as well as institutions at the highest levels are increasingly advocating for transition finance as a way to help emerging markets reduce carbon and achieve a global net zero.
At Ninety One, we believe transition finance is a force for positive change as well as an opportunity for investors to achieve an appropriate risk-adjusted return.
We try always to participate where the impact will be meaningful. Lately, it’s been our privilege to gain access to international forums with top patronage.
Our CEO, Hendrik Du Toit, on 10 July was among a small group of executives who met His Majesty King Charles III and President Biden at Windsor Castle following the Climate Finance Mobilisation Forum. The forum was hosted by UK Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy for Climate John Kerry. The White House, in an official release afterwards, said the participants were key players identifying how to go further and faster in mobilising private investment to support the emerging market transition. A fact sheet published by the White House describes the event and includes a reference to a Ninety One initiative for emerging market transition investing.
Concurrently, the World Bank named the 15 Chief Executive Officers and Chairs who will drive the Private Sector Investment Lab announced by the institution last month. The Lab’s task is to break down barriers preventing private sector investment in emerging markets. Our CEO, Hendrik, is also in this group, whose members include BlackRock CEO Larry Fink and HSBC Group CEO Noel Quinn. Co-Chaired by Mark Carney, the UN Special Envoy on Climate Action and Finance and Co-Chair of GFANZ, and Shriti Vadera, Chair of Prudential plc, the Lab will meet regularly and report directly to the World Bank Group President Ajay Banga. The group’s goal is to help ensure public and private finance work together to address this EM challenge.
For the past three years, Ninety One has been a leading voice for a just transition in emerging markets, including through advocacy efforts with industry networks like GFANZ, the Sustainable Markets Initiative (SMI) and the Investor Leadership Network (ILN). The opportunities are there – and the work continues.