Financing climate action with positive social impact: How banking can support a just transition in the UK

Over the next decade, banks and the financial sector as a whole will need to show how they are aligning their balance sheets with the UK’s net-zero greenhouse gas emissions target, how they are enabling households and companies to become resilient to climate change impacts, and how the process of often disruptive transition can be steered so that it is fair and inclusive. These goals combine to form the challenge of the just transition, a task that has become even more important with the shock of COVID-19.

This report presents research findings and recommendations for how to achieve these aims. It focuses primarily on the role of the UK’s banks and building societies, but it also contains recommendations for other lenders and government at all levels.