Cross-Sector Partnership
Transition
Valuation Project
Scaling Investments in Just Transitions by Valuing What People Need
Accelerating transitions, while aiming to achieve net zero, must be rooted in the needs of society and nature. This means that health - human and planetary - or jobs - growth and quality - should be at the heart of just transitions. Citizens, through pension funds and multilateral development banks, can play a major role if corporate transition plans are valued by what people need for a just transition.
That’s why, as our flagship project, we are focusing on understanding and addressing the valuation issues that are preventing greater progress in the global transition to net zero and the Sustainable Development Goals. There’s growing pressure on companies to develop credible transition plans that show how they manage climate, nature, and social risks and opportunities.
The Challenge
Every company must navigate the transition towards net zero and sustainable development goals. Across sectors, progress varies widely - from those yet to take meaningful action, to leaders with fully articulated governance structures, net zero targets and published transition plans with commitments to capital expenditure. The Transition Pathway Initiative’s staircase model illustrates this range.
However, even the most committed organisations are not moving fast enough. One critical reason is that capital is not flowing at the speed required to finance transition initiatives in a crucial way:
aligning capital expenditure with ambitious transition plans.
Purpose of the TVP
The Transition Valuation Project (TVP) tackles this challenge by diagnosing the underlying valuation and decision-making issues that block capital flows into credible SDG-aligned transition plans. It will focus on understanding both from a financial and an impact perspective:
Key decision-makers across organisations - investors, corporate boards, development banks, pension funds other capital allocators - who influence transition finance.
Core challenges - including data and information gaps, systemic blockages, regulatory or fiduciary constraints, and market alignment issues.
Potential solutions – human-centered design of emerging systems ranging from standards, frameworks, market mechanisms, governance models, and measurement and valuation methodologies.
We’re proud to collaborate with some of the most trusted and innovative providers of impact valuation solutions.
Why this matters
Institutional investors—like pension funds, insurers, sovereign wealth funds, and development finance institutions need confidence that transition plans are:
Viable – capable of delivering on stated net zero commitments.
Feasible & Realistic – realistic and executable given organisational and sectoral context.
Accurately Valued / Priced – such that enterprise valuations reflect SDG-aligned
Research suggests that uncertainty and a lack of confidence around the valuation of corporate transitions are constraining capital flows, slowing organisational progress and overall SDG-aligned transitions.
Our work is guided by our sprint and usability approach to collaborate on innovative approaches, such as evaluating health outcomes of blended capital flows into infrastructure.
Source: IPCC AR6, Chapter 18:
What the project delivers
Map the landscape of roles and responsibilities influencing SDG-aligned transition valuations.
Define and prioritise barriers that are slowing capital flows
Highlight solutions—including impact valuation and measurement—where relevant, once problems are clearly diagnosed.
Develop and publish practical recommendations and pathways to build market confidence in SDG-aligned transition valuations.
How we can collaborate
We work with partner organisations to learn and advance the valuation of capital flows in terms of their positive and negative impacts on SDG-aligned transitions to net zero.
Private and Public Pension Funds:
Our focus is to understand and address the decision journey and information needs for investing pension capital in assets and companies, with regard to their transition pathways and their ambition, management and performance.
Multilateral Development Finance Institutions:
Our focus is to understand and address the decision journey and information needs for financing the just transition and implementation of policies for job growth and quality in public infrastructure and private market investments.
All System Participants:
To achieve the goals of the TVP, we work with all participants in the system - from beneficiary representatives, NGOs, government agencies, asset managers and solution providers.
