Financing the “Just” in Just Transition
A clear framework outlines mechanisms and pathways that unlock more capital to ensure the climate transition is not only green but also equitable.
The transition toward a more environmentally sustainable, socially inclusive world will create unprecedented financing opportunities and reallocation of capital flows. BCG works with clients to build capabilities in sustainable finance and investing.
Veronica Chau
To address the growing financial materiality of environmental and social topics, financial institutions are building new capabilities to pursue emerging financing opportunities and better manage ESG-related risks. This shift toward sustainable finance and investing is quickly becoming a source of competitive advantage.
At BCG, we work with financial institutions to develop enterprise-wide strategies and operating models for delivering on sustainable finance and investing ambitions. We help them translate their net-zero commitments into action. We also work with corporate and investment banks to more effectively pursue new sustainable finance opportunities. What’s more, we help asset and wealth managers to unlock the value of their sustainable investing capabilities, and to do so in a way that avoids greenwashing.
BCG helps banks, asset managers, and other financial institutions create competitive advantage in sustainable finance and investing. Here are just some of the ways we help clients:
A global bank set an ambition to become a leader in sustainable finance and investing by 2025. BCG identified and sized commercial opportunities, developed a sustainable finance framework and strategy, and created a two-year roadmap for execution. The bank doubled the size of its original sustainable finance and investing ambition and is on track to become a market leader in sustainability.
One of the biggest asset management companies in the world set a three-year goal to integrate ESG into all of its investment decisions. BCG identified the capabilities needed to become an ESG leader, designed a methodology framework for net zero, and set up a project management office to run 12 workstreams. The company translated its ESG ambitions into concrete, quantified ESG commitments and implemented a set of robust net-zero targets.
A global bank committed to reducing emissions from its lending and investment portfolios to achieve net zero by 2050. BCG established climate transition frameworks for high-emitting sectors, developed a methodology for facilitated emissions, and shaped the bank’s roadmap to net zero. The bank announced an ambitious net-zero strategy, including commitments to reduce financed and facilitated emissions, and is now a leader in climate and sustainability.
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A clear framework outlines mechanisms and pathways that unlock more capital to ensure the climate transition is not only green but also equitable.
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