Transition finance: planning for growth in a changing energy system
The transition is reshaping the energy system, industrial supply chains and the capital that flows to them, with energy security now as high on the agenda as decarbonisation. We help banks, insurers and investors build transition plans that position them to finance, insure and invest in that change.
One of the largest reallocations of capital in a generation
Grids, storage, low-carbon power, industrial decarbonisation and secure energy supply all require sustained financing and risk transfer. At the same time, transition plans are increasingly expected by supervisors, investors and disclosure standards. Institutions that plan well can align those expectations with where the growth is.
Built by people who designed financial-sector transition frameworks
Our team has founded and led global financial-sector initiatives on transition and helped develop the standards that underpin them. We combine that experience with sector expertise to make transition plans commercially useful, not just compliant.
Engagement formats
Credibility Review
4–6 weeks. An independent link-by-link review against IFRS guidance and, for EU banks, EBA requirements, with a red-flag scan of public claims.
Transition Plan Development
End-to-end transition plans for banks, insurers and asset managers, built around where the transition creates growth in your sectors.
Sector Pathway & Financing Policy Design
8–10 weeks. Pathways, baseline and alignment metrics and financing conditions for two or three priority sectors, with a data partner.
Transition Opportunity Mapping
Sector-by-sector analysis of financing, underwriting and investment opportunities across power, grids, storage, industry and energy security.
Outcomes clients can point to
- A transition plan that meets disclosure and supervisory expectations
- A clear view of where the transition creates growth for your institution
- Sector positions relationship managers and underwriters can act on
- Metrics and governance that track progress over time
How we approach transition finance
The Five-Link Credibility Chain
The anchor for financial institutions’ transition plans has moved from voluntary alliances to supervisors and standard-setters: the EBA’s prudential transition plans, IFRS Foundation guidance built on the TPT materials, and FINMA expectations. The Credibility Chain tests whether targets, pathways, capital, engagement and evidence actually connect.
- Link 1Target
A recognised pathway with base year and scope; interim milestones inside the planning horizon; material portfolio emissions covered; board ownership with consequences.
- Link 2Pathway
Sector pathways for material high-emitting exposures, using stated scenario sources and PCAF baselines, reconciled with clients’ realistic technology and investment plans.
- Link 3Capital
Financing, underwriting and investment strategies derived from the pathways, with transition finance defined tightly enough to withstand challenge.
- Link 4Engagement
Client and investee engagement with objectives, timelines and escalation, targeted at the largest contributors, tracked as real-economy change.
- Link 5Evidence
Progress measured and disclosed on a fixed cadence, methods a reviewer can re-perform, and client-facing claims checked against the evidence base.
A plan is scored on its weakest link, not its average, because that is how a supervisor or an investor reads it.
Test our framework on your own institution
Transition Plan Credibility Test
This expertise in our sector practices
Sustainable Banking
Credit, capital and client strategy for banks managing climate and nature risk while financing the transition.
Explore the practiceSustainable Investment
Portfolio strategy, products and stewardship for asset managers and asset owners.
Explore the practiceSustainable Insurance
Underwriting, investing and product design for an insurance industry on the front line of climate and nature loss.
Explore the practicePreparing or updating a transition plan?
A 30-minute conversation is enough to scope a plan, or a review of the one you have.