1. The need for a ‘Just Nature Transition’

The report defines a ‘just nature transition’ as an evolution that delivers decent work, social inclusion, and the eradication of poverty during the shift to a net-zero and climate-resilient economy, while simultaneously achieving biodiversity goals in agriculture, forestry, land-use, and the oceans. While efforts to deliver a just transition have historically focused on the energy sector, the imperative of decent work applies equally to nature-related transformations. The Intergovernmental Panel on Climate Change (IPCC) estimates that annual net-zero investment flows must grow by 10 to 29 times in agriculture, forestry, and land use alone by 2030.

Financial institutions should apply three core principles to guide their work: integrating human rights and labour standards across all actions; anticipating and addressing social risks and opportunities for workers, suppliers, communities, and consumers; and ensuring meaningful participation through social dialogue and partnership with affected stakeholders.

2. A just transition in agriculture and food systems

Agriculture is a primary source of livelihoods, providing work for around 1 billion-plus people globally and accounting for over 60% of employment in low-income countries. However, the sector has the highest global level of informal employment at over 93%, meaning job security and social protection are often limited. The transition to net zero could translate into 120 million fewer jobs than a business-as-usual scenario by 2030, particularly affecting Africa and Asia. Women account for over 41% of the agricultural workforce in low-income countries but frequently have restricted access to land, finance, and decision-making.

Financial institutions can utilise capital allocation levers to support smallholders, as seen in the AGRI3 Fund, which aims to mobilise $1 billion in capital, or the Acumen Resilient Agriculture Fund, which focuses on adaptation solutions for smallholder farmers in Africa.

3. A just transition away from deforestation

Approximately 1.6 billion people live within five kilometres of forests worldwide, with 71% residing in low- and middle-income countries. Indigenous Peoples represent just 5% of the global population but safeguard around 80% of the world’s remaining biodiversity. Research indicates that 91% of land managed by Indigenous Peoples and local communities is in ‘good’ or ‘fair’ ecological condition, covering at least 36% of the global land area identified as Key Biodiversity Areas.

Initiatives like the Investors Policy Dialogue on Deforestation (IPDD), supported by 58 global institutional investors managing $8.5 trillion in assets, demonstrate how financial institutions can engage governments to protect Indigenous rights and ensure sustainable land management. Institutions are urged to establish strong deforestation policies that specifically include land rights and the principle of free, prior, and informed consent.

4. A just transition towards nature-based solutions

Nature-based solutions (NbS) could contribute 37% of the emissions reductions needed by 2030 for a 2°C warming scenario. Investments in ecosystem restoration are effective for job creation, providing an average of 3.7 times as many jobs as oil and gas production investments. However, many jobs in this sector remain informal, which can limit wage levels and occupational safety.

Financial institutions should adopt established standards like the Gold Standard, which defines assessment questions across nine safeguard principles, including human rights and gender equality. Capital allocation through vehicles like the Livelihoods Carbon Funds can help empower smallholder farmers while restoring ecosystems through sustainable practices such as agroforestry and mangrove restoration.

5. A just transition in the restoration of ocean ecosystems

The fishing and aquaculture sector provides the basis for the livelihoods of approximately 60 million people globally. While women make up 14% of the direct workforce, this figure rises to approximately 50% when including post-harvest operations. Transitioning to a sustainable ‘blue economy’ has significant potential; for instance, a study estimated that 92,000 jobs could be created in a sustainable transition of the European Union’s fishing sector and related industries.

Financial institutions should employ the UNEP FI Sustainable Blue Economy Finance Principles to ensure investment activities are inclusive. For example, Rabobank’s green loan for salmon farming in Chile integrates social criteria ensuring the payment of decent wages, regulated working hours, and consultation with Indigenous and local communities.

6. Conclusions and recommendations

The report offers five key recommendations for financial institutions to support a just nature transition. Firstly, they should include just transition principles in their own plans for net zero and biodiversity. Secondly, they must set clear transition expectations for the businesses they lend to or invest in. Thirdly, institutions should purposefully channel finance to companies committed to social progress for workers and communities. Fourthly, they should engage with policymakers to reform agricultural and forestry policies. Finally, financial institutions should work to ensure that social and just transition factors are effectively included in key reporting frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD), to improve transparency and performance disclosure.