Climate transition finance is at a tipping point: Achieving the 1.5-degree Celsius target set by the Paris Agreement will require an average annual investment of $2 trillion through 2050, while the more cautious 2-degree target will require at least $1 trillion annually. Banks that make strong, immediate commitments to financing the transition can reap billions of dollars in incremental revenue. Conversely, laggards may see profits erode from 2030 onward.

Tools like our ready-to-use Transition Finance Model enable banks and other financial institutions to develop and implement a winning strategy by assessing three transition scenarios that can be refined and adapted as the landscape evolves. We’ll help you answer key questions about how to assess carbon exposure, how to decarbonize assets and portfolios for maximum risk avoidance and value creation, how to attract and deploy sustainable capital, and how to invest in or finance the businesses that are at the forefront of the climate transition or at earlier stages in meeting their carbon reduction goals.

We can guide you in making the right moves on four key elements of your sustainable finance and investment strategy:

• A deep analysis of target customer segments and defining the right ambition level
• A well-designed value proposition guided by tangible KPIs
• A carefully defined go-to-market strategy and suitable organizational model
• A clear pilot-to-scale path informed by continuous monitoring