21 Aug 2025

The A4S Transition Finance Playbook

Accounting for Sustainability (A4S), in partnership with the Institute for Sustainable Finance (ISF) and leading asset owners and asset managers, have developed a practical guide for financial institutions to scaling transition finance. The guide aims to equip decision-makers across the financial sector with the tools to grasp the urgency of the transition, adopt leading practices in sustainable investment, and accelerate the flow of capital toward climate-aligned finance.

In the Transition Finance Playbook - A practical guide for financial institution ("Guide"), A4S and The Institute for Sustainable Finance offer top tips and practical examples that the financial institutions can take to scale up their transition finance activities. It aims to empower the financial sector actors to:

Integrate transition finance into investment and lending strategies
Support real-world emissions reductions
Align with fiduciary duties and long-term value creation

The tips outlined in the Guide include:

Section	Tips
Secure executive support and strengthen governance	Get senior support for your transition finance approach Evolve governance structures to oversee transition finance
Define the scope of your transition finance activities	Leverage third-party frameworks to define your transition finance activities Understand different approaches to setting eligibility criteria
Build your capacity to invest in transition activities	Segment portfolios and set up transition vehicles Align internal teams on the purpose, scope and features of transition deals
Factor transition planning and targets into due diligence and underwriting	Develop and publish clear assessment criteria drawing on external frameworks Evaluate your engagement potential prior to investment Embed decarbonization targets in underwriting strategies
Strengthen accountability through effective monitoring and engagement	Use a range of metrics to track the multiple facets of decarbonization progress Develop dynamic engagement and escalation strategies Empower investee companies and clients through education and capacity-building initiatives
Embrace your role as a steward of systemic change	Foster peer-to-peer collaborations Collaborate with policymakers to drive economy-wide change

Source: A4S

Access the Guide

The Transition Finance Playbook - A practical guide for financial institutions

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