On just transition, finance, and sustainability

The Just Transition: Finance as a Force for Equity and Climate Action

As we accelerate efforts toward a low-carbon economy, one principle must remain front and center: no one should be left behind.

A just transition means ensuring that workers, communities, and businesses, especially those in carbon-intensive sectors and vulnerable regions, are supported through the shift to a greener economy. It's not just about decarbonization. It's about fairness, inclusion, and resilience.

The financial sector has a pivotal role to play.

From mobilizing capital for green infrastructure and clean energy to embedding social safeguards into investment strategies, finance can drive change that is both environmentally and socially sustainable.

Some ways financial institutions are stepping up:

Developing sustainability-linked loans with social KPIs.

Supporting reskilling programs for workers affected by the energy transition.

Directing capital to SMEs and underserved communities as part of net-zero strategies.

Engaging in active stewardship to promote just transition principles across portfolios.

But we must go further.

The transition will only succeed if it’s trusted, and trust comes when people see that change creates opportunity, not exclusion.

Let’s ensure our financial systems not only enable the green economy, but also help build a more just, inclusive, and equitable world.