Key takeaways: Transition finance - A strategic imperative for boards

Our expert speakers Vanessa Havard-Williams OBE (Chair, Transition Finance Market Review) and Irem Yerdelen (Lead Member for Sustainable Finance, City of London Corporation) shared key findings and recommendations of TFMR’s landmark report and explained the role of newly launched Transition Finance Council in scaling transition finance and putting TFMR’s recommendations in action. 

The session evolved in a panel discussion and Q&A with James Close (Head of Climate Change, NatWest), Joanna Bonnett (Immediate Past President, Association of Corporate Treasurers and Non-Executive Director), and Alexandra Innes (Chapter Zero Fellow and Non-Executive Director) joining the conversation and sharing their insights.

The discussion provided five key takeaways:

1. Transition finance can and should be done.

Our expert speakers drew from their organisations' experiences and shared real-life examples of attracting funds to accelerate green transition. They also highlighted specific financial instruments that have been crucial in supporting this transition, such as the FCA's sustainable investment labels. These practical insights reassure that there are already many 'building blocks' in place to drive transition finance in organisations. 

2. Transition finance cannot live in isolation from the organisation’s business and financial strategies.

It is crucial to bring CFOs and wider financial teams into the conversation on climate transition and ensure that financial planning is a critical part of transition planning and vice versa. This is where non-executive directors can challenge their executives to establish an integral link between the organisation’s financial and climate transition plans. 

3. Both financial and real economy companies should be embedding and integrating transition finance into their business models and financing decision.

It is also important to emphasise how transition plans can help real economy companies access transition finance opportunities. 

4. NEDs must challenge their executives to engage with transition finance, drive the innovation and create tangible value within their organisations.

The experts recognised that turning climate transition from regulatory obligation to a business growth driver requires a mindset shift, which can be achieved through board training and upskilling, using the language of commercial opportunities and leveraging recognised resources and frameworks such as Transition Plan Taskforce Disclosure Framework and Chapter Zero’s Transition Planning Toolkits.  

5. An ecosystem approach is essential for accelerating transition finance.

As well as connecting national ambitions to sectoral pathways and corporate plans, with the Transition Finance Council facilitating collaboration across the financial system.

Discover more  

To discover events, insights, and networking opportunities designed specifically for NEDs across the UK financial services ecosystem, we invite you to visit the newly launched Chapter Zero's Financial Services Spotlight page.