Transition Finance Consensus Mapping


Status: Climate Bonds Initiative is working on mapping of corporate transition frameworks to demystify the landscape of transition finance. This is the first step in a wider collaborative effort from Climate Bonds InitiativeClimate ArcInstitutional Investor Group on Climate Change (IIGCC) and Sustainable Markets Initiative, with methodological feedback from Glasgow Financial Alliance for Net Zero (GFANZ) and representatives from the investment world.

The project addresses the pressing challenge of navigating through various corporate transition frameworks that have proliferated. The goal is to create a navigator tool that enables financial institutions to orientate their corporate portfolios in a way that is consistent with those frameworks. The intention is to release that tool in 2024. 



  High level consensus found across corporate transition finance frameworks
  Mapping exercise finds broad commonality in the principles underpinning credible targets, delivery strategies & accountability mechanisms 


Navigating Corporate Transitions: a tool for financial institutions

Building on the foundational work of 'Transition Finance Mapping' (see below),  "Navigating Corporate Transitions: a tool for financial institutions" paper presents a methodology for a tool designed to aid financial institutions in assessing and categorising corporates by their transition credibility and maturity. 




In this document, the Climate Bonds Initiative, in consultation with IIGCC, SMI and funded by Climate Arc, has mapped the degree of alignment of 13 corporate transition frameworks and highlighted areas where further work and alignment is needed.

The initiative is part of a broader effort to assist asset managers and asset owners in analysing their investment portfolios on the path to net zero emissions. The goal is to expedite the allocation of capital to corporations at various stages of transition and promote the gradual decarbonisation of high-emission assets, all while preventing greenwashing practices.

Additionally, it is sought to foster consensus among existing corporate transition frameworks, ensuring a cohesive approach to sustainable finance.

 In the upcoming phase of work, a practical tool will be developed that will enable the allocation of corporations within investment portfolios to the appropriate  transition categories, facilitating effective engagement strategies. The initial version of this tool is set to be shared in January 2024 for market testing. Subsequent refinements will be made based on lessons learned from this testing phase.