Positioned at the center of global capital flows, financial institutions are uniquely equipped to shape the pace and scale of the net-zero transition. To stay on track for a 1.5-degree-C pathway, investment must increase nearly fivefold to $7.4 trillion annually by 2030, according to the Climate Policy Initiative. Similarly, the London School of Economics’ Grantham Research Institute estimates that global investment in climate action must reach $6.3 to $6.7 trillion per year by the end of the decade. Without this rapid financial mobilization, the world risks missing critical decarbonization targets, driving intensified climate disruptions, economic instability, and systemic financial risks. Bridging the climate finance gap requires action across the entire financial system. Asset owners, asset managers, private markets, banks, and insurers each have a distinct yet interdependent role in mobilizing capital and steering the net-zero transition. Each actor must adapt their strategies to align with a shifting landscape where risks and capital flows are deeply interwoven across markets and institutions.
Highlights
Comprehensive Finance Sub-Sector Analysis
Provides a comprehensive overview of how financial actors including asset owners, banks, insurers, private markets, and asset managers are shaping net zero strategies across the investment value chain.
Financial and Nonfinancial Levers to Support Climate Integration
Highlights best practices and tools, both financial and non-financial, for embedding climate considerations across finance subsectors, including opportunities within shareholder engagement, investment screening, product innovation, and internal capacity building.
Stewardship and Engagement
Details how sector actors can use proxy voting, shareholder proposal filings, and targeted multi-layered engagement strategies to incentivize climate action in the real economy and accelerate the transition.
Ecosystem Influences and Feedback Loops
Examines how cross sector interdependencies, evolving global alliances, emerging thought leadership, and shifting regulatory frameworks can be utilized as reinforcing accountability mechanisms.