Investors lack understanding and conviction for 'just transition' economy ambitions
Only 35% of firms familiar with just transition already have or are developing a dedicated investment strategy focused on this theme.
Fidelity defines just transition as «achieving the transition from a high carbon to a low carbon economy in a manner in which is fair for everyone».
The concept was familiar to only 42% of the 120 financial firms the asset manager quizzed, with awareness lower among Asian investors (30%) compared with European investors (47%).
Investors also revealed a lack of conviction that, as a society, we were likely to achieve a just transition, with just 43% suggesting it was unlikely.
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If this transition was to be achieved, over a quarter (27%) said it would take more than 15 years, while 52% believe it will be an ongoing process.
Fidelity found the main barriers to a just transition were a lack of clear government policy (46%) and proactive lobbying by legacy industries to pollute for longer (29%).
Only 35% of firms familiar with just transition already have or are developing a dedicated investment strategy focused on this theme.
Europe seems to be stepping ahead, with 38% of respondents in Europe having or are developing a dedicated investment strategy, versus just 20% in Asia. However, over half (52%) of investors currently consider it as part of a wider approach to ESG.
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In the long term, all investors surveyed overwhelmingly believed investing in a just transition would have a positive (91%) impact on risk and return profiles, suggesting investors do see this theme as an investment opportunity.
However, in the short-term investors remain split on whether it will have a positive (21%),
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