Stewarding a just transition: frontiers of practice in listed equities

This report analyses emerging best practice on just transition in listed equity markets, drawing on the practices and policies of a subset of investment managers (IMs) focused on sustainable and socially responsible investing. It examines how just transition considerations are being embedded within investment policies and practices, and identifies the current frontiers of just transition practice in this asset class. Listed equity markets represent one of the most significant pools of capital with direct exposure to sectors central to a low-carbon transition, and therefore also to just transition risks and opportunities. While climate considerations and now relatively well established within listed equity markets and strategies, the integration of just transition considerations remains comparatively nascent. Understanding what is happening at the forefront of current just transition practice in listed equities is therefore both timely and necessary. The report draws on a review of policy and reporting documentation, alongside a series of semi‑structured interviews with 26 IMs leading on sustainability practice in listed equities. The sample is not representative of the entire market, but rather, a selection designed to explore the evolving frontiers of just transition practice in listed equities, as well as the key opportunities and barriers to further progress.