This document complements the NZIF Supplementary Guidance on Just Transition by providing practical examples of how investors can translate just transition principles into practice across three areas of action mapped to the NZIF 2.0 framework.

Set internal direction & portfolio structure for alignment

There is no universally accepted definition of just transition. Key reference definitions are provided by the ILO, IPCC, UK Transition Plan Taskforce, and UNFCCC. NZIF users are encouraged to adopt a definition suited to their organisational context.

In 2019, MDBs jointly published five High-Level Principles on Just Transition, covering alignment of climate and socio-economic outcomes, mobilising finance, mitigating impacts, and ensuring inclusive and transparent processes.

Differentiated strategies are needed for developed and emerging markets. The $8.5bn Just Energy Transition Partnership (JETP) with South Africa at COP26 offers a model for mobilising concessional finance. Border to Coast Pensions Partnership voted against 96% of oil and gas chairs for inadequate transition plans in 2025 (p.8), with exceptions made for emerging market considerations.

Investors can draw on metrics from Climate Action 100+, the Just Transition Finance Lab (drawing on 13 disclosure frameworks), UN SDGs, World Benchmarking Alliance, Morningstar Sustainalytics, and MSCI to set targets and track progress. Phoenix Group committed £90 million to deliver approximately 2,000 affordable homes and upgrade existing stock to EPC C standards (p.14).

Shift alignment of assets to meet targets

Investors are encouraged to engage companies, asset managers, and MDBs to embed just transition considerations. In 2024, MDBs delivered a record USD137 billion in climate finance, with USD85 billion channelled to low- and middle-income countries and private capital mobilisation rising by 33% (p.16).

ILX and IFC financed ENGIE Chile’s coal phase-out, targeting closure or conversion of 1 GW of coal-fired capacity and at least 500 MW of new renewable generation, with an estimated avoidance of approximately 800,000 tCO2e per year (p.18).

Schroders developed a proprietary indigenous rights framework, noting that wind and solar generation require at least 10 times as much land per unit of power compared to coal- and gas-fired plants (p.20).

As of July 2025, only 7 of 36 banks assessed had disclosed actions to incorporate just transition principles into their climate strategy (p.20). Border to Coast, Royal London Asset Management, and Friends Provident Foundation published sector expectations for banks in May 2024, with a follow-up report noting improved practices and disclosures expected in early 2026.

Influence external environment to facilitate alignment

In 2024, 226 new climate cases were filed, bringing the total to 2,967 across nearly 60 countries (p.26). A Business and Human Rights Centre tracking tool recorded 95 just transition cases brought by indigenous peoples, workers, and frontline communities as of July 2025 (p.26). Romania’s Declic and Bankwatch case caused losses estimated at over 443 million euros in unproduced energy and related costs (p.27).

Maharlika Investment Corporation’s early community engagement in the Philippines resulted in a contractual 1.25% royalty on gross output, a dedicated trust fund, and an expected approximately 1,200 jobs (p.25). IGCC advocacy contributed to Australia establishing the Net Zero Economy Authority in May 2023.

Conclusion

While progress has been made, significant gaps remain. Areas for further work include the creation of more replicable case studies, harmonised data and methodologies, stronger adaptation and resilience approaches, improved access to rightsholders, and enhanced knowledge sharing.