Planetary Pulse 2022
Planetary Pulse

The rise of transition finance

What transition finance means for asset owners and its role in the path to net zero
What transition finance means for asset owners and its role in the path to net zero

Planetary Pulse reveals the findings from new primary research into transition finance.

It is based on a survey of 300 senior professionals at asset-owner institutions and advisors around the world, including pension funds, insurers, endowments, foundations, central banks, sovereign wealth funds, and consultants.

North America highlights

Fighting climate change is a strategic goal for 60% of North America asset owners, and 52% say that financial institutions have a responsibility to provide investment capital to fund the decarbonization of high emitters. These proportions lag behind asset owners from the UK and Asia Pacific, falling roughly in line with Western Europe.

When it comes to transition finance in particular, only 17% of North America asset owners say they are using it – among the lowest adoption rates in our survey. The main barrier is internal resistance to changing traditional strategies. Given that a relatively high proportion (60%) believe transition finance is a major commercial opportunity for asset owners – higher than the other regions – the motivation to overcome this and other barriers is in place for many.

But transition finance adoption is unlikely to be as fast as other regions, with only 31% North America asset owners likely to invest in it within the next 12 months. However, the medium-term outlook is stronger, with 69% of North America asset owners saying transition finance will grow rapidly over the next three years – the highest among the regions.

No results found

Interactive report


Download Planetary Pulse report

Visualised: The rise of transition finance

When it comes to generating real-world impact through transition finance, adoption rates vary. Transition Finance Leaders are actively using transition finance as part of climate-related strategies, Transition Finance Laggards are not.

Partner content published on FT.com

Real-world impact: The rise of transition finance

‘Green’ strategies, such as ESG-branded assets, are designed to have small carbon footprints. In some cases though, this means they are avoiding carbon-intensive industries, rather than taking meaningful steps to help lower emissions. Transition finance is about real-world impact.

Learn more

How pension funds enable transition finance

Listen to an exclusive interview with Brunel Pension Partnership’s chief responsible investment officer, Faith Ward, and portfolio manager, Daniel Spencer as they discuss how asset owners can enable vital transitions while remaining true to their fiduciary duties.

Learn more

Resources

Download the report and infographic to reveal what transition finance means for asset owners and its role in the path to net zero.

Download Planetary Pulse report Download infographic

Important information
The information in this report may cover general market activity or industry trends and is not intended to be relied upon as a forecast, research or investment advice. The economic and market views presented herein reflect Ninety One’s judgment as at the date shown and are subject to change without notice.

There is no guarantee that views and opinions expressed will be correct, and Ninety One’s intentions to buy or sell particular securities in the future may change. The investment views, analysis and market opinions expressed may not reflect those of Ninety One as a whole, and different views may be expressed based on different investment objectives. Ninety One has prepared this communication based on internally developed data, public and third party sources. Although we believe the information obtained from public and third party sources to be reliable, it may not have been independently verified, and we cannot guarantee its accuracy or completeness. Ninety One’s internal data may not be audited.

Except as otherwise authorised, this information may not be shown, copied, transmitted, or otherwise given to any third party without Ninety One’s prior written consent. © 2022 Ninety One. All rights reserved. Issued by Ninety One October 2022.