The EU has introduced many sustainability laws over the past few years, with sustainable finance having been a key focus of the European Commission. Hot on the heels of the European elections, this session brings together representatives of major pools of capital and the EU executive to discuss EU sustainable finance and reporting policy achievements and shortcomings so far, and what lies ahead. 

While many investors focus on the transition to renewable energy, energy efficiency is equally important in reaching climate goals. Improvements to energy efficiency can drive dramatic declines in consumption, leading to enhanced investor returns.  A case study on heating optimisation via an asset backed private credit solution will bring this topic to life.

There is a profusion of transition risk metrics, ranging from complex proprietary forecasts to simple stranded asset proxies. In between there are also transparent metrics that extract information from market prices, which we will also demonstrate.

Leading European and UK asset owners discuss their net-zero and energy transition policies and approaches. What progress are asset owners making, what challenges are they encountering and how are they working to overcome them?

The American Inflation Reduction Act has at its core a commitment to transition finance, while at the same time kick-starting a planned re-industrialisation of the nation. However, new exploration has been shut down in large swathes of the country, although production capacity for today's hydrocarbon market is nearing a peak.  We’ll look at the potential directions of travel for the US given a potential change in leadership, and also have fascinating case studies of California's and Alaska's transition stories.

Investors have to juggle climate-related risks at different levels and over different time horizons. How might the EU Green Bond Standard help them mitigate these risks and why should they be in favour of a debt issuance structure combining use of proceed green bonds and sustainability-linked bonds?

A mainstay of institutional investors’ portfolios, sovereign bonds are typically still excluded from investors’ decarbonisation commitments. Does this make sense and what can be done about it? A financial engineer and climate investment specialist deliver a reality check and way forward.

The transition to net zero presents a major, structural investment opportunity. Transition investing allows investors to pursue their return goals while seeking to make real-world change in two ways: by financing new infrastructure/industries that will speed up the energy transition and by providing capital at commercial rates to heavy emitters of today that have credible transition plans. We will discuss how a focus on emerging markets is vital as that is where the greatest transition needs and opportunities reside, bringing this alive with case studies. 

Allocating 4% of a strategic asset allocation to natural capital – investments which enhance biodiversity – may seem like a bold move to some, but one UK public service pension has done just that. The architect of this plan will discuss their thinking about it, how it  has been implemented and the joys and pitfalls found along the way.

Compliance with new EU rules (CSRD, CSDDD if passed) should deliver more useful corporate reporting for investors, That will pave the way to transition. However, how does the topic of risk management look in transition, especially in terms of systemic and collective perspective? In the meantime, there are also advances in satellite emissions monitoring and intelligence. What should investors expect from these developments and what should they focus on? 

The presentation will highlight CFA Institute's commitment to transition finance and the EU's single market role. Key points include AI-driven governance improvements, challenges like fund mismanagement, and the EU's shift from the Green Deal to defence. It will also emphasize AI's impact and the need to enhance governance within ESG frameworks, with companies playing a crucial role.

Extreme weather patterns are becoming increasingly frequent; a stark reminder that our climate is changing more dramatically and faster than ever before. Why should one of the world’s largest pension funds care about this and how are they changing their investment portfolio to meet the challenge? The chair of the €225bn Dutch pension explains their new 3D investing philosophy -  focusing on risk, return and impact – and how this investing approach will generate financial and societal returns for their participants.

We reveal the winners and highly commended investors of the IPE Transition Awards 2024