OMFIF Sustainable Policy Institute

The amount of capital investment required to transition to a sustainable economy is estimated to be as high as $5tn per year. This means that, with their long-term horizons, vast capital and market influence, public pension and sovereign funds are increasingly at the forefront of transition finance. The potential of these global public funds to drive the capital needed to hit net zero cannot be overstated. Against this backdrop, OMFIF’s Sustainable Policy Institute has established the Transition Finance Working Group. The group, featuring Franklin Templeton, EY and MSCI Inc., convened 12 bilateral meetings with public pension and sovereign funds representing over $5tn in assets under management. That process yielded more than 20 hours of detailed, engaging, challenging, collaborative and at times difficult discussions on the state of transition finance. These conversations have informed the working group’s first report. ‘Global public funds and transition finance’ explores pension and sovereign funds’ approaches to transition finance so that they can learn from each other and identify areas of common concern, including internal challenges, regulation and policy and the broader financial markets. It encourages all stakeholders to work together and create credible investment opportunities to meet the net-zero goals of transitioning companies, industries and entire economies. Read the report: https://lnkd.in/dZ8JBe6D Watch the virtual launch of the Transition Finance Working Group’s first report, which follows the in-person seminar held at COP 29 in Baku: https://lnkd.in/daVK6ayf

50% of respondants we surveyed for the Transition finance working group's first report, Global public funds and transition finance do not currently track transition plans of the companies they invest in. Find out why by reading the report for free: https://lnkd.in/dZ8JBe6D

Public pension and sovereign funds are increasingly at the forefront of transition finance. The potential of these global public funds to drive the capital needed to hit net zero cannot be overstated: https://lnkd.in/dZ8JBe6D Against this backdrop, OMFIF’s Sustainable Policy Institute has established the Transition Finance Working Group. The group, featuring Franklin Templeton, EY and MSCI Inc., convened 12 bilateral meetings with public pension and sovereign funds representing over $5tn in assets under management. These conversations have informed the working group’s first report. ‘Global public funds and transition finance’ explores pension and sovereign funds’ approaches to transition finance so that they can learn from each other and identify areas of common concern, including internal challenges, regulation and policy and the broader financial markets. Read the report: https://lnkd.in/dZ8JBe6D

🌏On Wednesday, we hosted our third China-UK investor forum, following the success of the events held in 2022 and 2023. Thank you to our partners, (Bank of China, China Construction Bank (Asia), China Chamber of Commerce in the UK) community partner (Lau China Institute, King's College London) and all of the speakers for making the event such a success. Rewatch Jin Liqun's (president of the Asian Infrastructure Investment Bank (AIIB)) speech: https://lnkd.in/dW2bjDG6 Read David Marsh’s opening remarks: https://lnkd.in/eQ33-YCg Read Ambassador Zeguang Zheng’s opening remarks: https://lnkd.in/e4tEYw7m

Climate and sustainability were key areas of focus at the #G20 summit. Join us on Wednesday 11 December for a virtual rountable with Adam Wang-Levine, Deputy Assistant Secretary, Climate, Environment and Infrastructure at the US Treasury (2023-24). The roundtable will consider some of the key climate financing considerations to come out of the summit, including methods for scaling up green investment, barriers to sustainable finance and possible solutions to overcome these challenges. It will also explore the importance of global collaboration to drive the green transition. Find out more: https://lnkd.in/e6FpPBgi

For many of the world’s leading public pension and sovereign funds, so far the 2020s won’t be remembered as the fondest of times. These are long-term investors who typically try to see through the ebb and flow of external influence. They are stewards of public money whose horizons should be far into the distance, rather than underneath their noses. The triple impact of the Covid-19 pandemic, the return of inflation and conflict arising from heightened geopolitical tensions ripped up the typical public fund’s playbook. But while the last of these factors remains in play, the easing of concerns about inflation is allowing these influential investors to go back to a more risk-on, long-term approach. This is a key message that emerges from OMFIF’s Global Public Funds 2024 report, informed by surveys, discussions or contributions from 28 global public pension and sovereign funds with more than $6.5tn in assets under management. Over the long term, our survey shows these investors are assessing the impact that technological change – such as the growth of artificial intelligence – will have both on the way they manage their portfolios and risk assessments internally, but also on how it will affect the markets in which they invest. Read the report, created in partnership with Franklin Templeton and Neuberger Berman: https://lnkd.in/eJsYda4k

To navigate the path to net zero, OMFIF’s Sustainable Policy Institute convened a working group with some of the world’s largest public pension and sovereign wealth funds. Together, they explored investment strategies, challenges, and the overall outlook for transition finance. While there’s momentum in enhancing returns and achieving real-world impact, key obstacles remain, including data and information gaps, standardisation, risk understanding, and finding viable opportunities. Catch up on the virtual launch of the Transition Finance Working Group’s first report, following discussions at COP29 in Baku. Hear from experts as they share key findings and explore solutions to drive the transition: https://lnkd.in/daVK6ayf

🌍 Energy leads the way in transition finance – but what’s next? OMFIF’s Global public funds and transition finance report reveals how nearly 60% of global public funds see energy as the sector with the greatest impact potential. From private markets to blended finance, discover the key strategies shaping the future of investment. 📊 Get the full insights and data in the report: https://lnkd.in/dZ8JBe6D

#Climate and sustainability were key areas of focus at the #G20 summit. Join us on 11 December at a roundtable that will consider some of the key climate financing considerations to come out of the summit, including methods for scaling up green investment, barriers to sustainable finance and possible solutions to overcome these challenges. It will also explore the importance of global collaboration to drive the green transition. Register: https://lnkd.in/e6FpPBgi

What is transition finance and how are global asset owners approaching it? Find out by reading the Global public funds and transition finance report: https://lnkd.in/dZ8JBe6D