The UK Impact Investing Institute (III) is an independent, non-profit organization that aims to make capital markets fairer and work better for people and the planet.
The III has developed a set of Just Transition (JT) criteria to provide a means for investors to align their financial products consistently and substantively with the Just Transition elements defined by the III three elements: advancing climate and environmental action; improving socio-economic distribution and equity; and increasing community voices.
Following the piloting of the JT criteria, Oliver Wyman was engaged to help the III bring it to market and design the concept for an operationalization model and implementation plan for a potential sustainable finance label looking to recognize JT-aligned financial products.
The Oliver Wyman team showed great professionalism throughout our collaboration, providing us with valuable support in thinking through the next steps in our Just Transition finance program. The team’s outputs were expert, meticulous, and strategic. It was a real pleasure to work with the team throughout the processKieron Boyle, Chief Executive, Impact Investing Institute
Oliver Wyman supported the III over eight weeks in Spring 2023 in the run-up to the London Net Zero Delivery Summit in May, where the III launched the JT criteria.
To help the III think through how to best launch the JT criteria and ensure they gain traction, the team followed a three-step approach, beginning with a review of the landscape of existing sustainable finance certification approaches. This highlighted the value proposition of the JT criteria compared to the market. The Oliver Wyman team then identified potential operationalization models for the JT criteria, including a view of how the III could develop a JT label that recognizes JT-aligned financial products. Lastly, the team developed a comprehensive implementation plan, comprising both key steps for the III to take in the short term as they launch the JT criteria as an investment framework, and steps for the long-term to take if the III decides to develop the JT investment framework into a full-scale sustainable finance label.
The transition to net zero can only succeed if it fairly takes place, leaving no one behind. It has been truly rewarding to support the III in mobilizing action for this pivotal cause and professionally enriching to work at the forefront of sustainable finance, identifying levers for informing, and steering the decision-making of financial market participantsSebastian Gerlach, Engagement Manager, Oliver Wyman
The work done clearly articulated the position of the JT criteria in the market, confirming that it is different and additive to other offerings.
Oliver Wyman also designed a comprehensive operationalization model with key design options that the III can leverage in the future.
Similarly, our implementation plan provided the III with tangible guidance on how to launch the JT criteria most effectively in the short term and how to approach the potential design of a full-scale label in the long term.