Shifting gears from ESG 1.0 toTransition Finance

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Shifting Gears from ESG 1.0 to Transition Finance

The shift from ESG to Transition Finance marks a critical evolution in sustainable investing. Rather than relying on flawed, exclusionary ESG metrics, Transition Finance prioritizes sound business models that drive profitability while enabling climate adaptation and mitigation.

Feb 25, 2025

Cino Robin Castelli, Partner, Head of Transition Finance Investment, Orange Ridge Capital

Tags: ESG and Climate Risk

Shifting Gears from ESG 1.0 to Transition Finance

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

ESG investing has relied on oversimplified, ineffective metrics that fail to correlate with positive financial outcomes.
Climate change is an unavoidable reality, with shifting weather patterns creating both risks and investment opportunities.
Transition Finance focuses on economic adaptability, prioritizing profitable, scalable solutions over ideological constraints.
Investors who embrace this pragmatic approach can capitalize on the next industrial revolution while driving real climate impact.