What does transition finance mean for investors?

In the latest edition of The Responsible Investor Podcast, Jenn Hui-Tann of Fidelity International discusses challenges and opportunities in sustainability's fastest-growing market.


Subscribe to The Responsible Investor Podcast on:
Apple Spotify PodBean Audible Pandora

Transition finance is the fastest-growing area in sustainable investment. Over the past two years, the amount invested in transition-focused funds in Europe doubled as inflows into traditional ESG funds stalled.

The appeal of transition finance is obvious. It offers sustainability-minded investors access to a broader range of sectors and companies than “pure green” strategies, while at the same time potentially achieving more real-world decarbonisation.

But what does transition finance actually involve? Is it compatible with net-zero goals? Which industries, instruments and regions offer the best opportunities for returns? And, in the absence of regulatory clarity, do investors in the segment risk being accused of greenwashing?

In this episode of The Responsible Investor Podcast, RI editor Lucy Fitzgeorge-Parker discusses the rise of transition investing with Jenn Hui-Tan, chief sustainability officer of $800 billion manager Fidelity International.

Topics covered include the hunt for high-quality data, how to assess corporate transition plans and investment opportunities in Asia, as well as the concept of a Just Transition and the shift in focus towards policy engagement.