Financing Sustainable Transition: Key Insights for Investors
Financial institutions often grapple with the challenge of financing industries that are essential to the economy but are hindered by significant ESG transition barriers. Hard-to-abate sectors, such as steel, cement, chemicals, aviation, and shipping, as well as industries with complex social and governance risks, such as labor-intensive manufacturing, require targeted strategies to improve ethical practices, advance social equity, and ensure regulatory compliance. The transition in these sectors is complicated by infrastructure lock-in, technological limitations, global supply chain dependencies, and high capital costs.
